Cassidy Melhorn, a Knoxville-based real estate investor, has built a business that perfectly balances profit and freedom. What started as a single flip in 2013 has grown into a thriving operation with dozens of deals each year and a 54-unit rental portfolio that generates steady passive income.
From early struggles and near burnout to financial independence, his story is both practical and inspiring for anyone interested in real estate investing.
Cassidy operates out of Knoxville, Tennessee, on the east side of the state, running a diversified real estate business focused primarily on flips. Each year, his operation completes around 30 to 40 transactions, including:
He also manages a small but growing portfolio of rental properties. The mix of strategies allows him to stay agile in various market conditions, while a lean team helps maintain efficiency.
Cassidy emphasizes freedom over headcount. His team includes two experienced construction foremen, his wife Victoria (a licensed agent handling dispositions), and a lifelong friend who manages cold calling in exchange for profit splits. SEO efforts are outsourced. This setup supports his lifestyle while enabling 30–40 deals annually without bloated overhead.
Cassidy started in 2013. For nearly a year, he struggled to land his first deal. Eventually, he and his then-girlfriend (now wife), Victoria, used her income to secure an FHA 203(k) loan to purchase and renovate a HUD foreclosure.
The property was intended as a live-in flip. Cassidy even obtained a home improvement contractor’s license so he could manage the renovation himself.
The estimated $25,000 renovation budget stretched thin, and they nearly ran out of money. But pushing through resulted in $60,000 to $70,000 in equity, and more importantly, proof that Cassidy could complete a project, solve problems, and come out ahead even when things went sideways.
In an episode of the DealMachine Real Estate Investing Podcast, Cassidy shares his full journey from flipping his first house to building a 54-unit rental portfolio and a freedom-focused lifestyle. Want to hear the full interview? Watch the full episode below:
After graduating with a degree in mechanical engineering, Cassidy landed a job in Oak Ridge, TN, but he quickly realized it wasn’t a long-term fit. Around the same time, he partnered with a veteran REO agent. With just $500 to $1,000 in funding, Cassidy deployed a guerrilla marketing plan using:
The strategy worked. In the first partial year, they closed 10–15 deals. That grew to nearly 30 the following year and over 40 the next.
By February 2016, Cassidy had earned more that month wholesaling than his full-year engineering salary. A looming wave of layoffs was his cue. When the layoff hit, he took it as a green light to go full-time in real estate.
Cassidy’s early marketing methods were scrappy and effective:
These strategies cost little but yielded big results in the early years.
Initially, Cassidy sold most deals to a handful of reliable “short list” buyers. While convenient, he later realized those buyers often resold the same properties for $20,000–$30,000 more. This led him to begin listing deals on the MLS to maximize exposure and profit.
At a Collective Genius mastermind, Cassidy had a breakthrough moment. Despite doing high volumes with great margins and low overhead, he realized all his income would stop if he couldn’t work. That fear sparked a shift: he needed passive income.
From late 2019 to mid-2021, Cassidy acquired 54 rental units using profits from flips. He avoided excessive refinancing, focusing instead on stable, cash-flowing properties. The portfolio allows him to pause work, travel, and focus on his family while still generating income.
His operations are streamlined:
This setup keeps overhead low and Cassidy's mornings free for health and family.
Properties are scoped and scheduled using a mobile app. Cassidy only steps in for exceptions, not day-to-day decisions. This hands-off approach has been key to maintaining quality while scaling operations without stress.
Cassidy lives by a written document outlining his vision for health, finances, and family time. He lost 60–70 pounds, plays pickleball four mornings a week, and regularly lifts weights and mountain bikes. This vision ensures his business fuels his lifestyle, not the other way around.
Cassidy intentionally avoids deals that demand constant oversight or pull him away from his kids’ events. He prefers assistant coaching youth teams to running staff meetings. He’s learned that clarity makes it easier to say no to distractions.
With increased days on market and tempered buyer activity, Cassidy is shifting from an 85/15 flip-to-wholesale ratio to something closer to 60/40. This strategy helps him avoid holding excess inventory in uncertain conditions.
Cassidy continues to buy rentals when the numbers work and flips selectively. Wholesaling gives him speed and liquidity. The mix may shift, but the focus remains on stability and long-term value.
Q1: How do I start flipping houses with little money?
Start flipping houses by exploring options like FHA 203(k) loans, partnering with seasoned investors, or wholesaling to build capital. Cassidy’s first deal used a 203(k) loan and grit.
Q2: What’s the best way to find off-market properties in Tennessee?
Use low-cost marketing like bandit signs, Craigslist posts, and yard sale groups on Facebook. Supplement with SEO targeting “we buy houses in [your city]” keywords.
Q3: Is house flipping still profitable in a slowing market?
Yes, if you adapt. Consider shorter holds, wholesaling, and tighter ARVs. Cassidy recommends pivoting exit strategies based on inventory risk and buyer behavior.
Q4: How many rental units do I need for financial freedom?
It varies. Cassidy hit 54 units and is aiming for 10–15 more. The goal is covering life costs with passive income, not chasing unit count.
Q5: Should I build a large real estate team or stay small?
That depends on your goals. Cassidy runs a lean team that supports his lifestyle. More isn’t always better if it adds stress and limits freedom.
Q6: What is the best first step to start flipping houses?
Start with education and networking. Learn from experienced investors, attend local meetups, and consider starting with a live-in flip using an FHA 203(k) loan like Cassidy did.
Q7: How much money do I need to flip my first house?
It depends on your market, but many first-time flippers start with $20,000–$30,000. Creative financing, like renovation loans, can lower upfront costs.
Q8: What are common house flipping mistakes to avoid?
Underestimating rehab costs, overpricing ARV, not building a buyer list, and skipping permits. Start with a detailed budget and lean on expert help when needed.