Updated over 9 years ago on .
Flip to get Capital using Contractor/Capital Partner
Hi Everyone!
I've been trying to figure out how to get our 2nd deal underway. We just closed on our 1st SFD which ate up most of our cash reserves. While I could be patient and wait for that to build back up, I'm rather impatient and want to do something soon. I've been looking into the BRRRR method, but I think we might be more suited for a few flips in the beginning just to build up some cash. We will be using my dad as a cash partner for the money needed for renovations. Our ultimate goal would be to reimburse my dad along the way from these flips and operate on our cash reserves alone.
In our neck of the woods, we have houses on the market for $15K-$20K that need some "TLC". One house in particular that we're interested in is located in a B/C+ neighborhood with home values ranging from $60K - $100K. My VERY rough math tells me if we purchase this ~900 sq ft 3/1 house for $20K (or maybe $15K even), inject $20K-$30K of work into it (including various holding costs), and then turn around and sell it for a minimum of $60K (hopefully more obviously) we would be off to a good start. My husband and I both work full-time jobs so we would definitely need to rely on contractors to do much of the work. As much as I like the concept of "sweat equity", we just don't have the time or expertise for a major (or even minor) renovation. I'm ready to jump in but my husband seems pretty reluctant. I understand a flip can be quite challenging, but the most rewarding. What are some words of wisdom or suggestions you have for us?