Concerning startup capital

[Mike D.]

Has anyone here tried to raise capital by buying personal residences at a substantial discount and then fix them up while living in them?

I was thinking this might be an alternative to flipping houses for someone who works full time and doesn't have enough free time to complete the flip in a timely manner. This way the holding costs don't affect you as much since it is just taking the place of your primary mortgage.

Does anyone here do this? What are the down sides?