How To Turn $98K Equity Into a 30% Return on a Flip

How To Turn $98K Equity Into a 30% Return on a Flip

June 20, 2025

Produced by:
Carmel Woodman

With over 8 years of expertise, Carmel brings a wealth of knowledge as the former Content Manager at a prominent online real estate platform. As a seasoned ghostwriter, she has crafted multiple in-depth Property Guides, exploring topics such as real estate acquisition and financing. Her portfolio boasts 200+ articles covering diverse real estate subjects, ranging from blockchain to market trends and investment strategies.

Reviewed by:
Richard Stevens

Richard Stevens is an active real estate investor with over 8 years of industry experience. He specializes in researching topics that appeal to real estate investors and building calculators that can help property investors understand the expected costs and returns when executing real estate deals.

In this eye-opening project recap, the Austin Flipsters take on their first-ever flip in Dallas, and it delivers big time. Working with repeat client Kunal, they transformed a dated 1950s home into a high-style, high-profit property using smart layout reconfigurations, bold design choices, and airtight project management. With a $106K renovation budget and savvy upgrades, the team helped Kunal walk away with $46,000 in profit—and a 29.5% return on equity.

From bold tile in the bathrooms to a Texas-sized kitchen island and a reimagined floorplan, this flip is full of inspiration and lessons for investors, designers, and aspiring flippers alike. Whether you’re curious about the financials, the design details, or the behind-the-scenes strategy, we’ve broken it all down below.

Key Renovations That Boosted Value

Transforming a mid-century Dallas home into a modern, market-ready property took more than just paint and polish. The team focused on a mix of structural upgrades, smart layout changes, and eye-catching design choices that appealed to today’s buyers, while staying within a $106,000 renovation budget. Each renovation decision was made with return on investment (ROI) in mind, ensuring that the final product would not only look great but sell quickly and profitably. Here’s a breakdown of what they did…

🏚 Structural & Systems Upgrades (High ROI Foundation Work)

Gutters Before and After

Foundation Repair

Major leveling was needed—critical for resale value and inspection approval.

New Roof

Replaced to eliminate future buyer concerns and pass lending requirements.

Full Window Replacement

Original vintage windows were charming but not energy-efficient. Replacing them added modern appeal and functionality.

HVAC Updates

Removed old venting system (including quirky floor vents) and modernized heating/cooling.

🧱 Layout & Flow Improvements

Living area Before and After

Opened Up Living/Kitchen Wall

Removed a non-load-bearing wall between the kitchen and living area to create a cohesive open-concept space.

Converted Pass-Through Window to Doorway

Improved circulation and visual connection between kitchen and dining space.

Reworked Kitchen Layout

Replaced peninsula with a large Texas-size island by relocating a gas line under the slab—highly desirable for entertaining.

🚿 Bathroom Overhauls

Primary bathroom

Primary Bath Reconfiguration

Stole closet space from the hallway to enlarge the primary bathroom, allowing room for a luxurious walk-in shower and more counter space.

Modernized Hall Bathroom

Kept the footprint but upgraded all surfaces—new vanity, lighting, mirror, and bold matte brown tile in the shower for a standout design.

Hall bathroom Before and After

🛠 Cosmetic & Design Upgrades

All New Flooring

Initially planned to refinish hardwoods, but replaced with cohesive, durable LVP (luxury vinyl plank) throughout the entire home.

New Kitchen Finishes

  • White Shaker cabinets
  • White quartz countertops
  • Bold green backsplash tile
  • Gold and black hardware

Stylish Lighting & Fixtures

  • Sputnik-inspired chandelier
  • Matte black ceiling fans and lighting
  • Gold bathroom fixtures for a modern touch

Exterior Paint & Landscaping

  • Fresh siding and paint
  • Cleaned up overgrown landscaping to reveal curb appeal
  • Rebuilt fence sections and improved lawn visibility
Spare room

🧺 Laundry Room Glow-Up

Though detached, the laundry room got a full makeover:

  • Bold tile floors
  • Painted deep moody blue
  • Added cabinets for utility and style

Want to estimate your potential profit before you buy? Try New Silver’s free ARV calculator to quickly analyze after-repair value, compare costs, and spot the best investment opportunities.

Renovation Breakdown

Category Details
Structural Improvements - Foundation repair - New roof - Full window replacement - HVAC upgrade
Layout Changes - Removed wall between kitchen & living- Converted pass-through to doorway - Installed large central island (relocated gas line)
Kitchen Renovation - White shaker cabinets - White quartz countertops - Bold green backsplash- Gold & black hardware
Primary Bathroom - Enlarged by stealing closet space - Added spacious walk-in shower - Single vanity with extended counter space
Hall Bathroom Hall Bathroom - New vanity, mirror, lighting - Bold matte brown tile in shower - Removed over-toilet countertop
Flooring - Replaced original floors with cohesive LVP throughout the home
Design Features - Sputnik chandelier & modern lighting - Matte black and gold finishes throughout
Laundry Room - Bold floor tile - Dark moody blue paint- New storage cabinetry
Exterior & Curb Appeal - New siding & paint - Landscaping cleanup- Fence improvements

Financial Breakdown

Category Amount
Purchase Price $371,000
Renovation Costs $106,000
Financing & Holding Costs $32,000
Total Investment $518,000
— Equity $98,000
— Debt $424,000
Listing Price $599,000
Closing Costs (on sale) $29,750
Gain on Sale (Profit) S$46,000
Return on Equity (ROE) 9.5%

Project Management Lessons Learned

This flip was a success not just because of design choices, but because of how well it was executed. Here’s what made the process smooth, and profitable:

  • Dedicated Project Manager On-Site
    Having a single point of contact overseeing every detail – from demo to finishing touches – helped avoid delays, reduce mistakes, and maintain high standards.
  • Clear Communication with Remote Client
    The investor, Kunal, lived out of state, so the team ensured regular check-ins, status updates, and milestone tracking. This level of transparency builds trust and minimizes surprises.
  • Quick Recovery from Setbacks
    When the wrong flooring was accidentally installed in the back bedrooms, the team caught the issue early, replaced it promptly, and avoided any timeline creep.
  • Front-Loaded Big Ticket Fixes
    Foundation, roofing, and HVAC were handled early to prevent mid-project issues and protect resale value—saving time and money in the long run.
  • Design Decisions Made Early
    Pre-approved design packages and layouts helped avoid on-the-fly changes, which are often costly and delay timelines.

Lessons for Scaling Flips Successfully

This project marked a major milestone: the first successful flip in a new city. It proved that with the right systems, flipping homes can scale efficiently across markets while maintaining quality, profitability, and speed.

1. Build a Repeatable Process

Scaling starts with a solid framework. From acquisition and design planning to renovation and resale, having a consistent process reduces risk, improves speed, and makes it easier to manage multiple projects—especially across geographies.

2. Standardize the Core—Personalize the Details

The flip relied on reliable, high-ROI materials like white shaker cabinets, quartz counters, and luxury vinyl plank flooring. These standard selections streamline decision-making and budgeting, while bold tile choices and fun lighting added just enough flair to differentiate the home.

3. Assemble a Trusted, Local Team

Expanding into a new market requires a dependable on-the-ground crew. Having strong relationships with local contractors and a hands-on project manager ensured quality control and kept the timeline on track, even when minor issues arose.

4. Focus on Strategic Oversight

To scale successfully, it’s essential to shift from being the hands-on flipper to a more strategic role. That means focusing on market research, capital deployment, and project pipeline—while trusting the team to handle day-to-day execution.

About Austin Flipsters

Austin Flipsters

Austin Flipsters is the brainchild of two college friends who turned their passion for real estate into a full-blown movement. Long before house flipping went viral, they were already documenting their renovation journeys and bringing viewers along for the ride. With a combined background in design, construction, and business, they’ve flipped hundreds of homes and inspired a generation of real estate enthusiasts to do the same.

What started as a side hustle quickly grew into a full-time operation—and a hit YouTube channel. Today, they’ve built a loyal community of 285,000+ subscribers, earning millions of views with their high-energy, before-and-after transformation videos. From layout reconfigurations to bold tile choices, every project blends smart investing with standout design—and a good dose of personality.

More than just entertainment, their videos and projects offer real-world lessons in renovation strategy, budgeting, and market insight. Whether you’re a seasoned investor or just flip-curious, Austin Flipsters brings you front row to the highs, lows, and payoffs of flipping houses in real time.

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