I Want to be a Flipper when I grow up!

Buying & Selling Real Estate
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I Want to be a Flipper when I grow up!

Scott Prock
Nampa, ID · Member since 2016 · 14 posts · 5 votes

It's been three months since my first post and I have a better understanding on what I would like to focus on. 

I was leaning towards wholesaling at first, but I understand in order to do it right will require more up front money than I have at this stage. I like the idea of buy and hold for long term investing, but I've decided that will fit into my strategies later.

I have always liked the idea of house flipping, I like watching the shows on HGTV etc. but I understand that's not a true representation of the industry. My main reason for choosing flips is I LOVE the idea of taking something that is either run down, or outdated and giving it new life.

My struggle now is how and where to get started. The Boise, ID market seems to be a tough beginner market, but that's only on the surface after looking through Zillow, Craigslist etc. I'm sure there's a flipper market here, but I'll have to seek out those who are already doing it.

Which comes to my thoughts for my first direction. I need to find a mentor (famous words of every newbie right!?!?!) I understand I need to bring something to the table, and figure I have one of two options. Maybe I can do both. I could find deals as a bird dog and/or provide graphic/web design in exchange for being shown the ropes. I have a graphic design degree and will be happy to provide samples of my work to anyone who would be interested in working with me.

I have been wanting to run through the deal analysis parts in order to start developing that skill. My hurdle at this time is not knowing how to properly gage the costs of the rehab. I thought I could just start plugging in numbers from listings I find online as a way to practice, but I'm wondering if that would be a wise use of time, or will it throw me off since most of what I find online will be market listings that are priced too high.

Also, does anyone know if there are local Boise meetups on the weekends? My day job schedule prevents me from attending 99% of the meetings during the week.

Appreciate any feedback ... Scott

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Lee G.
Developer · Boise, ID · Member since 2009 · 168 posts · 112 votes
9y

So I'm going to be the negative nelly here. So many guys start off saying they want to flip homes without knowing what that really entails. Flipping is a real job. You should have real familiarity with construction. Do you have a construction background? Were you planning on doing the work yourself or do you have a team of subcontractors that you know and can trust? Even the biggest builders in town are struggling to retain their subs. You need to understand project management so you can deliver your project on time. You need to have an eye for home design and be able to do it quickly. Spending a day picking out tile and then changing your mind will kill your project. Same goes if you cut into a load bearing wall to move a room and realize you need to spend a grand on a huge beam. And in today's market, you need to be a marketing pro. We are at record low inventory levels so you'll need to find a deal before it hits the MLS.

I applaud your desire to get going -- that's a crucial first step but flipping isn't the cure all that many newbies think it is. Take a hard look at your skills and see how you can apply those skills to real estate. There are a thousand ways to "do real estate" beyond flipping. Focusing on what you do best will ensure you are successful. My best advice would be for you to go find a 1-4 unit in the 2C and run that for a bit. Your returns aren't going to be spectacular or particularly fast but you can find stuff Nampa and the rest of the 2c that will cash flow and enable you to cut your teeth on some of this stuff minus the risk and the months of work with a relatively low hourly wage.  Now that I've probably destroyed your dreams, start writing offers. 

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  • Ian Price
    Michigan City, IN · Member since 2016 · 55 posts · 19 votes
    9y

    Hey Scott, 

    I too love making diamonds out of coal! Flipping is what I want to do as well. I recommend buying J Scott's book on Estimating Rehab Costs.  You can get a better deal if you buy that and Book on Flipping as a combo here on BP. I did that and have read both. I keep referring to it as I am analyzing deals like you are. 

    Ian

    3Reply
  • Cody Stone
    Investor · Boise, ID · Member since 2015 · 218 posts · 107 votes
    9y

    Hey @Scott Prock,

    There is a Bigger Pockets Meeup tomorrow at Cafe Ole in Boise tomorrow evening. 6:30pm 

    210 N. Milwaukee, Boise, ID 

    0Reply
  • Scott Prock
    OP
    Nampa, ID · Member since 2016 · 14 posts · 5 votes
    9y

    @Ian Price thank you for that, I have read the BP book on low or no money down investing, but will look up J Scott's book as I have heard a lot about it. I recently finished "The Real Estate Rehab Investing Bible" by  Paul Esajian which goes over check lists on estimating costs, but the figures mentioned in the book are what worked for the author's market. Still, I think the spreadsheets will be usable.

    @Cody Stone I saw the meeting, it runs till 8pm right? My courier route ends in Nampa at 7pm. I would only catch the last 30 min or so. Do the meetings run longer?

    0Reply
  • Kuba F.Pro Member
    Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
    9y
    Scott Prock I highly recommend jscotts rehab estimating book as a good primer, and soon I'll be releasing a market based estimating tool for people who like their numbers tight.
    0Reply
  • Libbie Grant
    Friday Harbor, WA · Member since 2016 · 47 posts · 14 votes
    9y

    I love that part of Idaho! (I'm originally from Rexburg. Don't love Rexburg so much...)

    If Boise ends up not being a good place to start, what about Moscow?

    I too love the idea of flipping and would love to do it, myself. However, there's no way it would ever work in my immediate area. Properties routinely stay on the market here for a year-plus. My husband and I are looking at the nearest town instead. It's an hour's commute away, but it's growing pretty steadily so it might work out for us.

    0Reply
  • Scott Prock
    OP
    Nampa, ID · Member since 2016 · 14 posts · 5 votes
    9y

    @Libbie Grant I see what you you're saying, and it makes me think Boise should be a dream market. From what I understand it's a sellers market right now. It's not uncommon for homes to sell for more than list price, and they're not on the market for long. So, the key I would imagine is finding the deals.

    So far all I have to go off of in my research is Zillow, Trulia etc. as I don't have access to the MLS (yet).

    I could always "drive for dollars" on the weekends.

    1Reply
  • Lee G.
    Developer · Boise, ID · Member since 2009 · 168 posts · 112 votes
    9y

    So I'm going to be the negative nelly here. So many guys start off saying they want to flip homes without knowing what that really entails. Flipping is a real job. You should have real familiarity with construction. Do you have a construction background? Were you planning on doing the work yourself or do you have a team of subcontractors that you know and can trust? Even the biggest builders in town are struggling to retain their subs. You need to understand project management so you can deliver your project on time. You need to have an eye for home design and be able to do it quickly. Spending a day picking out tile and then changing your mind will kill your project. Same goes if you cut into a load bearing wall to move a room and realize you need to spend a grand on a huge beam. And in today's market, you need to be a marketing pro. We are at record low inventory levels so you'll need to find a deal before it hits the MLS.

    I applaud your desire to get going -- that's a crucial first step but flipping isn't the cure all that many newbies think it is. Take a hard look at your skills and see how you can apply those skills to real estate. There are a thousand ways to "do real estate" beyond flipping. Focusing on what you do best will ensure you are successful. My best advice would be for you to go find a 1-4 unit in the 2C and run that for a bit. Your returns aren't going to be spectacular or particularly fast but you can find stuff Nampa and the rest of the 2c that will cash flow and enable you to cut your teeth on some of this stuff minus the risk and the months of work with a relatively low hourly wage.  Now that I've probably destroyed your dreams, start writing offers. 

    5Reply
  • Becky Farnsworth
    Investor · Meridian, ID · Member since 2015 · 24 posts · 19 votes
    9y

    I agree with Lee that there is so much involved in flipping. That is what my husband and I really want to do some day as well. However, we started small. We are currently buying our third rental property and have owned rentals for 7 years now. We lived in the first one, fixed it up, then bought a new house and rented that one out. Then we bought our second rental 2 years ago and completely renovated it just like we would a flip, only we didn't sell it. We bought it off the MLS so the deal was good, not great. After paying $15k in realtor fees and closing costs, if we had sold it we would have only made $5-10k. We chose to hold it and now the house is worth about $50k more than we bought it for, and we have been cash flowing around $500/mon on it. The one we are buying now is a similar situation. I'm just saying that starting small isn't a bad thing. I feel 100% confident that we can buy and flip a house now, if the deal presented itself, and do well. When I first wanted to be a flipper 7 years ago, I would have failed miserably if I just dove in. Learn all you can and maybe "flip" a buy and hold property. You get to make a diamond out of coal, and the risk is lower. Plus, the market in this area is crazy so rentals are bringing in excellent cash flow. Good luck with whatever you decide to do!

    1Reply
  • Scott Prock
    OP
    Nampa, ID · Member since 2016 · 14 posts · 5 votes
    9y

    @Lee G.

    @Becky Farnsworth

    I find nothing negative about your advice, in fact one of the reasons I haven't really dove into posting until now is I didn't want to sound like a typical newbie, or one who hasn't considered the cost of what I want to get into. Wanting to flip houses and my expectations to flip houses are far apart. I understand this isn't something I will be able to do tomorrow, or at least with any amount of success.

    I have a five year plan, and my short term goal is to have purchased my first property before July 1st 2017. Your comments are the type I was hoping to get, and perhaps with in the next year or so I will have built or networked with a team that I can realize my goals. 

    I'm happy starting slow, and the ideal first purchase would be to live in. We've been renting the same house for 5.5 years and ready for our own. I'm hoping to find a lease option, so any improvements I do to the property wont seem like a waste.

    Thanks for the feedback ... Scott

    0Reply
  • Jerry Smith
    Caldwell, ID · Member since 2016 · 7 posts · 1 vote
    9y

    I enjoy reading your posts, it all sounds good to me but I have noticed no one has mentioned starting out by wholesaling a property and I wonder why not?

    Thanks.....Jerry

    0Reply
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