Flipping of Houses

8 Replies

Hello everyone! My desire is to buy and flip houses in the near-by future. What amount of savings would I need to accumulate in order to start effectively? and, For my first flip do I go small or big when referring to house size?  

Originally posted by @Steven J. Hawkins:

Hello everyone! My desire is to buy and flip houses in the near-by future. What amount of savings would I need to accumulate in order to start effectively? and, For my first flip do I go small or big when referring to house size?  

 "Success is the power of Independence!"

it depends on your market 4 what type of house you should focus on... As well as how much money you need to get started.

I would start with building a relationship with a real estate agent that can pull comps and get that type of information for you. Ask for the type of house that sells6 the fastest and most. Likely it will be a three bedroom one or two bath and garage.

That depends... 

First, understand the real estate investment strategy that you want to follow.  Understand the ins and outs, options, overall process, etc.  Lots of info on this site to do this.   What is your experience level, what area you want to invest in, average priced home in that area, what is your available time, do work yourself or hire GC, etc., etc., etc.

Then you will be able to answer your own question.  Nobody can really tell you what you want because it is up to you.  

The first home I flipped was 100% our own cash, no lenders.  The 2nd home had ZERO of our own cash.  Strategy...

I deeply appreciate all the great advice and knowledge. I recently attended a Success Path training by Terek and Christina from "Flip or Flop" it was a great training. There is a lot of things that I would have to obtain prior to getting started. Just to be on the safe side. The bottom line was before investing in any flip, rental, etc property it is safe to run the numbers to ensure that there will be a profit "After Repair Value" process. So please continue to feed good advice. God Bless. 

I use the 'Flip Analysis' from BP to get a general understanding of how to achieve the targeted profit. Note that the cost of flipping includes: holding the property (insurance, tax, utility, etc), sale of the property (marketing, agent fees etc.), financial charges and rehab cost. And of course your purchase price + closing cost. It could add up pretty fast! Do the math and reserve some contingency. 

Good luck!

"Success Path training by Terek and Christina"

--Careful!  I know a couple of people that have spent quite a lot of money, and got a rather meager education in return with this program.  Their words "You taught us more in a few weeks then we paid $30k for".  And I literally have spent a total of maybe 5 hours with them in those weeks....

I would start small, find what moves in your market. A cosmetic fixer would probably be best.

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