In this episode of The Real Estate Ride, I break down a deal that looked promising on the surface—but quickly unraveled when we took a deeper dive into the numbers, comps, and financing terms. This is a must-listen if you’re in the early stages of flipping or still learning how to properly analyze a property.

We dig into a Cincinnati property where assumptions about the ARV and comparable sales led to flawed expectations and a denied private money loan. I show you how to use PropStream to uncover the real story, how to determine whether comps are valid, and why one misplaced financing term on your contract can cost you both money and legal protection. If you’ve ever wondered how to avoid getting burned on your first (or next) flip, this is your blueprint.

Timeline Summary

[0:00] - Introduction

[0:51] - The importance of including financing contingencies in contracts

[1:13] - Overview of a Cincinnati deal lenders passed on and why

[2:25] - Using PropStream effectively when you don’t have MLS access

[3:05] - Evaluating PropStream’s valuation against agent insights

[4:21] - How closing and holding costs can quietly kill your profits

[5:30] - The danger of relying on optimistic resale values

[6:20] - How an appraiser dropped value by $8,000 despite multiple offers

[7:18] - Disputing appraisals: what works, what doesn’t

[8:20] - Expired comps, off-market listings, and misleading analysis

[10:29] - How to use PropStream to filter true comparables

[11:11] - Why you can’t depend solely on your Realtor’s advice

[12:00] - How using the term “cash” in a contract can become a legal liability

[14:08] - Consequences of misrepresenting loan terms on purchase offers

[16:41] - Why property type and structure must match in your comps

[17:11] - The one valid comp and what it reveals about real value

[18:24] - Inconsistent values across neighborhoods and why it matters

[20:09] - How to read heat maps of sales activity to gauge stability

[21:58] - The difference in value between ranch and multi-story homes

[23:17] - Seller markups and minimal rehabs that don’t add up

[24:02] - Spotting emotional decision-making in bad deals

[25:01] - Final advice: Don’t let this be your first flip

Key Takeaways

1. Run Your Own Numbers, Always

   Never rely solely on what a Realtor or wholesaler tells you. Use tools like PropStream to verify comps, value, and neighborhood trends for yourself.

2. Contracts Must Reflect Reality

   If you’re using private money, your contract should say so. Mislabeling a loan as “cash” can not only cost you earnest money but open you up to legal risk.

3. Thin Margins Are Not Worth the Gamble

   Even small holding costs and appraisal gaps can wipe out your profits. If your numbers only work in a best-case scenario, it’s not a deal—it’s a liability.

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