Is flipping a few foreclosed homes a good start if I would like to purchase a rental later?

1 Reply

Hello Everyone,

I am new to BP and very eager to jump start my journey into real estate. I've been doing my research and trying to learn as much as possible. Recently, I came across a foreclosed home that I'm looking to flip. The problem is, I really don't know how to go about getting financing or the steps of should take. (I just purchased the book Investing in Real Estate with Low or No Money Down.)

I would love to for anyone to shed some light on the process and what steps I should take and things to consider before I begin. 

Ideally, I would like to flip a few homes and recycle the proceeds to purchase a rental property. 

Please, any advice or suggestions you may have are all absolutely welcome. 

Getting financing: use your own funds, use a bank, find private lenders (friends, family, other investors you are networking with). Flipping is a good strategy to build up income. But make sure it's a good deal! If you lose money on your first flip, it could burn you. And trust me you will screw up a lot on your first flip whether it be with contractors or your main water line erupts.

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