Updated 5 days ago on . Most recent reply
Let's get started flipping!
Im listening to BP podcast. I think im at episode 8.
Id love to get free on the 6am-4:30pm 40+hr/wk stuff. I have 2 kids futures to plan for along with my own. I own/selling my 1st and only home due to divorce. Ill have a little money after that. Id like to get a house to flip and I have a couple already in mind in my northern michigan area. Gaylord. Id like to live in the home, flip it and repeat if possible and eventually have rentals and leave my job. Id love the passive income and have the ability to provide insurance for my kids. Id also like to provide affordable rent to those like me who live paycheck to paycheck.
I have 2 properties in mind but if I do it by myself, itll take a while as id pay a mortgage and save to be able to flip.
Is there any investors out there that can help out at a small and maybe slow scale?
as a job I run a 5axis lathe at work. Cnc manufacturing.
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#4 Starting Out Contributor
Jesse — Alan's not wrong, machine shops do print money. But you asked about flipping so I'll actually answer you.
You're in a better spot than you think. After the divorce closes you'll probably qualify as a displaced homeowner, which means FHA is back on the table even though you just sold. 3.5% down on a primary, so a $150K fixer in Gaylord is like five grand at closing. If it needs real work, look up FHA 203(k) — same loan covers purchase and rehab. You don't have to save for two years before you start.
The move is the two-year rule. Live in it as primary for 24 months, sell, first $250K in profit is tax free. That's not a hack, that's Section 121, written for exactly what you're describing. Do it twice in your 30s and you've built more tax-free money than most guys working overtime for 20 years.
Honestly your CNC background is the part you're sleeping on. Trim, cabinets, doors, metal work — all the stuff flippers pay $60–100/hr for, you already do. That's worth more than the cash you don't have yet.
On finding a partner — be careful. Most "investors" at a $20–40K check size are going to want half the deal, and you're the one doing the work. Don't do that at episode 8. Better order: FHA live-in (no
partner needed), then family co-signer with an actual written split, then seller financing on tired listings that have been sitting 90+ days. Hard money comes later, after you've done one and have a story to tell. Gaylord's slow enough that you're going to find carryback sellers if you just ask on every stale listing.
One thing on Gaylord specifically — it's seasonal. Buyers show up May through July, winter dies. Buy in January, list in June, that's the rhythm up there. And keep an eye on the short-term rental owners. A
lot of them are getting squeezed right now and the tired ones are going to dump properties over the next year. Those are your deals — motivated seller, mostly cosmetic.
On the health insurance piece for the kids — don't quit the CNC job until you've done two deals. I know that's the whole point of this but seriously, W2 is paying you to underwrite your family while you learn. When you're ready to leave, price out Direct Primary Care (~$60-80/mo per person) plus a catastrophic plan. Family of three lands around $400/month all in, way cheaper than people realize.
Monday morning stuff: call a local Gaylord credit union, not a big bank, ask about FHA and 203(k) for a divorced buyer. Pull actual sold comps on your two target properties — not Zillow, real sold comps within half a mile in the last 90 days. Run the math: ARV minus rehab minus 10% holding/selling minus purchase = profit. If it's under $30K, walk. Then finish the podcast.
You don't need a partner yet. You need one deal done carefully with skin in the game, and a realistic pace. You've got FHA eligibility, CNC hands, a market you know, and you're not lying to yourself about how fast this goes. That's already more than most people start with.
Good luck man, pulling for you.