First Real Estate Flip Gone Wrong: Lessons From a $100,000 Rehab Overrun

Send us Fan MailThis episode isn’t about a massive win. It’s about surviving a deal that went sideways and not quitting.Matt Richardson and Ashley joined Corey to share the reality of their first flip, a deal that looked solid on paper but quickly turned into a crash course in rehab overruns, contractor missteps, shifting lender rules, and refinance delays that pushed them months past their hard money maturity.Their $47,000 rehab turned into $100,000+, driven by:Poorly defined scopes of workSurprise subfloor, plumbing, and electrical issuesA contractor who quoted labor loosely and billed tightlyOnce the rehab was done, the market didn’t cooperate. Offers came in $40–60K below asking, and selling would have locked in a loss. Instead of panicking, they pivoted.Through networking and honest lender communication, they landed on a creative rent-to-own exit:$400,000 sale priceNo realtor commissions5-year term at roughly 2 percent interestBuyers refinance them out laterWhat could have been a deal-ending loss turned into a long-term win and a masterclass in resilience.The biggest takeaway? 👉 One bad deal doesn’t define you. Quitting does.If you want to connect with Matt or Ashley directly, you can reach them here:Ashley: [email protected]: [email protected]