5 Things I Wish I'd Known Before Buying My First Flip Property
Flipping houses looks like a dream on TV—buy low, fix fast, sell high. But if you’re thinking about diving into your first flip in Hattiesburg, there are some hard truths I wish I’d known before buying my first flip property. The process can be rewarding, but it’s also full of surprises that HGTV doesn’t always prepare you for. Whether you’re eyeing a fixer-upper near Midtown or a historic home downtown, here’s what you need to know before making that first investment.
1. The Numbers Don’t Lie—But They Can Fool You
The biggest mistake I made as a first-time flipper was underestimating costs. Before buying my first flip property, I thought I had my budget dialed in. Spoiler alert: I didn’t.
What I Learned:
- Always factor in hidden costs—permits, holding costs, utilities, insurance, and contractor delays. These add up fast!
- Stick to the 70% rule: Never pay more than 70% of a home’s after-repair value (ARV) minus repair costs.
- Have a contingency fund (at least 15-20% of your budget) because surprises lurk behind those walls.
📌 Local Insight: The Hattiesburg market has seen a rise in renovation costs, especially for older homes in historic districts. Work with a trusted contractor to get accurate estimates before committing.
2. Cheap Properties Come with Expensive Problems
It’s tempting to grab the cheapest house on the block, but be careful—some deals are too good to be true.
Red Flags to Watch For:
- Foundation issues – Common in older Hattiesburg homes, and fixing them can cost upwards of $10,000.
- Termite damage – Mississippi’s humid climate makes this a real concern.
- Outdated electrical and plumbing – If the home hasn’t been updated in decades, you might be in for a full-system overhaul.
✔️ Pro Tip: Always get a professional home inspection. It’s worth every penny!
3. The Right Contractors Make or Break Your Flip
Finding reliable contractors is one of the toughest parts of flipping. I learned the hard way that the cheapest bid isn’t always the best.
How to Avoid a Renovation Nightmare:
- Get at least three quotes for every major project.
- Check references and past projects—a good reputation goes a long way.
- Never pay 100% upfront—set milestone payments instead.
📌 Local Insight: Hattiesburg has a mix of seasoned pros and fly-by-night contractors. Ask for referrals from other investors or real estate agents to find reputable ones.
4. Selling Isn’t as Easy as You Think
I assumed my first flip would sell instantly. Instead, I sat on the market longer than expected.
Lessons in Selling Smart:
- Price strategically – Overpricing will leave your home sitting, while underpricing cuts into your profits.
- Stage the home – A well-staged home sells faster and for more money.
- Work with a local real estate expert (like me!) who knows how to market a flip properly.
📌 Market Insight: Homes in neighborhoods like Oak Grove and Midtown tend to sell faster than more rural areas. Understanding local demand is key.
5. Financing Can Be Tricky—And Expensive
Most traditional mortgage lenders aren’t keen on financing flips. Before buying my first flip property, I had no idea how many different financing options were available.
Common Financing Options:
- Hard Money Loans – Fast but come with high interest rates.
- HELOC (Home Equity Line of Credit) – A good option if you have equity in another property.
- Private Lenders – Investors willing to fund deals in exchange for a return.
✔️ Pro Tip: Have your financing lined up before you start shopping for properties so you can move quickly when a good deal pops up.
FAQs About Flipping Houses in Hattiesburg
Q: How much money do I need to start flipping?
A: It depends, but expect at least $30,000–$50,000 in cash or financing to get started.
Q: What types of homes are best for first-time flippers?
A: Stick with cosmetic fixer-uppers in good neighborhoods. Avoid major structural issues until you have more experience.
Q: How long does a typical flip take?
A: In Hattiesburg, the average flip takes 4-6 months from purchase to resale, depending on the renovation scope. Take a look at my latest flip.
Final Thoughts: Ready to Find Your First Flip?
Flipping houses can be an incredible investment—if you go in prepared. If you’re ready to start your flipping journey in Hattiesburg, let’s connect! As a local real estate expert, I can help you find the best properties, avoid common pitfalls, and maximize your profits.
📞 Contact me today to start searching for your perfect flip property, or check out my latest listings at OurHubCity.com. Let’s turn that fixer-upper into a success story!
