Financing First flip

[Kristin Dee]

If someone has the cash to buy a flip, is that the best way to go?  Cash to buy and then cash to renovate.  (I would assume yes to lessen the carrying costs but total newbie here wanted to make sure I wasn’t missing some tax advantage or whatever).   Thanks so much.

[Sean Hudgins]

Quote from @Kristin Dee:

If someone has the cash to buy a flip, is that the best way to go?  Cash to buy and then cash to renovate.  (I would assume yes to lessen the carrying costs but total newbie here wanted to make sure I wasn’t missing some tax advantage or whatever).   Thanks so much.

 If you have the cash to do the purchase and rent, that is great. Honestly, for your first deal, that is a great way to keep carrying costs low, and you will likely carry the property longer than you plan on your first deal anyway. It also gives you a chance to build up a portfolio of successful flips before you start going to hard money lenders and private investors to get more cash to do more deals. 

Once you build that trail of success, then I think it makes sense to start using leverage to grow your business quicker and supercharge your money's rate of return, but by no means do you have to do it that way.

Best of luck and we would love to hear about your first deal when you get started!