Downtown Los Angeles, CA · Member since 2014 · 4 posts · 0 votes
Ive been saving my earnings to get my first house to flip. I am just starting out but from what ive read i can get a loan on a cheap house with 5k as a down payment.. what would be a smart choice for me/
invest now and work on renovation?
save up more and than act on it later?
one forum said no matter what the house will eventually get sold getting a big return but it could take anywhere between 1 month, 6 months, to years.
Young and ambitious but dont hold enough wisdom in the industry to decide a good decision.
I personally would save up alot more money before trying to flip. That 5k would cover a down payment but where are you going to get the money to rehab or carrying costs you need for all the months it doesn't sell.
Whoever said "no matter what the house will eventually get sold getting a big return but it could take anywhere between 1 month, 6 months, to years." is incorrect. People have taken losses on flips.
So many variables in your question. In the end it doesn't matter how much you invest as long as you've got the right deal to invest in. You have to inspect the home check the comps to know where you're at so you don't take a loss. Do your homework on the house that you're purchasing before you make the purchase. Get a title search done get an attorney on your team and the realtors opinion on a after finished price. That'll give you a better idea of where you stand in which place to purchase. ?
@Jordyn Njoroge That is great you are saving money to Invest with. I don't have tons of experiencing in Investing but i have had things happen with my rental that just cost money. Not saying you should not do your first flip but just make sure you have a good plan if something does not go as expected.
You could find someone Flipping houses in your area and see how you could help them get what they want. Learning what is going on with people flipping houses in your area.
I personally would save up alot more money before trying to flip. That 5k would cover a down payment but where are you going to get the money to rehab or carrying costs you need for all the months it doesn't sell.
Whoever said "no matter what the house will eventually get sold getting a big return but it could take anywhere between 1 month, 6 months, to years." is incorrect. People have taken losses on flips.