Hello all at BP!
I am a nineteen year old college student with no income and knowledge on real estate investing. However, I do have a line of credit with good or fair numbers. Im reading books, trying to find mentors, trying to learn more about analyzing different parts of deals, and trying to learn all i can about Real estate. But with this low income, which would be the safest and/or best deal I could make?
My roommate, (who i plan on partnering with) says that our first deal should be a fix and flip because we're looking to achieve a goal of around Twenty Thousand Dollars fast off a flip. But again, with the current position im in, Im not sure which type of deal I should look seal.
Any thoughts would be appreciated, thank you!
@Quang Tran Welcome! I would simulate a few fix and flip deals. Go view some fixers, walk the property, write down repairs required, find the cost to fix those repairs, plug in hard money costs, closing costs, comimssions, holding costs, utilities etc. Figure the ARV (after repair value). Then watch the house and see what it sells for. Go view the house when fixed and on the market. This will help you learn to run numbers and get confident on doing a flip house. You will know the market as well and see when a property is overpriced. I would go for doing a flip but keep in mind to not overdo the flip for the area the house is in. In other words don't do a luxury flip in an up and coming neighborhood. Make sense? Good luck and keep us posted.
@Dylan Vargas Thanks for the tips, I appreciate them! Are all those calculations i need to figure out the expenses found off a local source? Or should i look elsewhere? I was planning on finding others in my area on BP to tell me about the prices and the market here in Sacramento. Also, why should i not do a luxury flip in an up and coming neighborhood?
@Quang Tran Yes you can look online on Realtor.com, Zillow.com and others to see what houses are selling for and the price, condition of the home and size. You will have to ask contractors in your area what they charge for specific repairs and renovations. You can go to Home Depot and Lowes to see what Laminate flooring, wood flooring, carpet, doors, appliances, water heaters, windows etc costs are. What I meant by luxury flip is that you need to make the house go with the neighborhood. For an entry level house you make the house entry levell or a notch better with your counter tops, window, cabinets etc.
@Dylan Vargas All right that clears things up and just makes me see how much more i really need to do. Thanks for the eye opener, ill be sure to figure those things out before I take my first leap on making a deal!
@Quang Tran Hope this helps. If I am doing a flip in Chico you are more than welcome to come see what we do and see the costs/before/after. I have had several others come by so they can get a hands on feel. I will probably be doing one soon so stay in touch. Good luck. Also they have investor meet up groups in Sacramento. Go check it out!
@Dylan Vargas Youre the first person to actually offer hands on training to me and I cannot tell you how much I appreciate that. I would love to come take a look at one of your projects and learn all the ropes. Definitely keep in touch!
No problem. OK, sounds good!
@Dylan Vargas walked me through one of his flips last year, very helpful!