I am just turning 18 and I have about 10k cash saved up and I want to start investing in real estate. I am hoping to make some passive income while at college since I am lucky enough to not have college loans to worrying about since I am on a full scholarship. I am just starting in investing and my father rents out two properties but my interest is in flipping - possibly live and flip strategy.
I feel I’m pretty handy and very ambitious. I installed hard wood flooring in two of the main living spaces in my current house and remodeled the bathroom. I don’t really know where to start flipping however, and I can use all the advice I can get!
@Michael Speciale when people say “passive income”. They usually are referring to rentals. There isn’t anything passive about flipping. Flipping is a job. You can make a lot of money at it, but it’s a full time job.
Also even landlording isn’t fully “passive”. I spent 5-10 hours a month on my rentals. Is it doable? Of course. It just takes some minor amount of time.
Have you thought about partnering with your dad? Not sure but as a college student I’d think it’d be tough to get into a property with only 10k, even as a primary residence. You might need him to co-sign with you anyway.
Live in flip would make sense just make sure the property would cash flow as a rental in case it can’t sell right away (options).
As I see it, 10k is way too small for you to start off on your own. The deals that you will have to do will have to be either with a very trusting private lender, hard money lender, or partner. Thus to get this financing you will have to bring them an AMAZING deal.
Also, as @Caleb Heimsoth mentioned, flipping takes a lot of time and great management to make a nice profit. Furthermore it is not exactly the cash flow method that you are looking for. If you are looking for something that will cash flow you would have to get more into the landlord side of real estate, but this would further narrow your financing options. You can also look into BRRRR.
Maybe look into wholesaling a few properties just to get your feet wet and earn some cash for your first flip or hold.
The 10K can be used for a few deposits for some decent wholesale deals
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