Updated over 9 years ago on . Most recent reply
How to pay for my first flip or income property?
Hi All,
I am newbie to RE investment and I am wondering how I would pay for my first flip or rental income property. I first wanted a multi-family home to live in one unit and rent the other, but in my area that is no less than $500k. So I started thinking to do a small flip. Buy some small house (under $80k), not necessary close to me, rehab for no more than $30k and try to flip it. It would be a small profit, but not much money to lose while learning.
One of my main concerns is that I might need a loan, because I don't have cash to present "cash offers". I even thought about FHA loan and live in the property for at least 1 year (not sure how right or wrong this is) and later rent or try to sell. Also thought about hard money loans, but since I have no experience, the rehab could take longer than planned and I would end with massive interest...
Anyone would like to share how they started or has any suggestion how should I?
Thank you!
Most Popular Reply
Jennifer Griffin
Remember when you take money out o you retirement savings you losin out on the compound interest. If your real estate venture fails then double whammy. Ouch!!!