Opportunity to buy a flip at $150k, "zestimate" is 340k
Hello all,
Background: I'm 21 years old, less than 5k in the bank, working on becoming a real estate agent in Colorado. I work in the oil field (~90k/year, heavily taxed) and am in the process of paying down debt ~10k before I start saving to be able to quit and be a REA. I am fascinated by the thought of not having immediate "bosses" and by taking my income into my own hands. I've always tried to work harder and longer than the next guy and put in 110%, so I know that I can have huge success as a REA. I have the drive and will work 7 days a week as many hours as it takes to succeed. However my interests go further, I eventually want to invest and own rentals so that I can have "passive" income on top of commission sales.
I have the opportunity to purchase the home that I have been renting for 3 years, for ONLY what the Landlord owes on the house. ~150k, and the "zestimate" is 340k. I have not gotten the home appraised however I am aware of the condition and of what it needs. This house could sell as-is right now, for 275k EASY. I'd like to put some work into it, carpet, backyard work (dogs digs holes), roughly 10k in plumbing (basement flooding yearly issues), and 2x bathroom remodel (kitchen already remodeled)
This seems like my big opportunity to get my entire real estate future started, I am just not sure how to go about it and I don't want to miss my chance. What kind of loan can I get while living in it and making the repairs? I can't come up with 20% of the 150k any time soon so that means a investment loan is out of the picture, correct? An FHA loan only requires 3.5% but I'm not sure if I can legally rent or sell it shortly after the purchase. The plan would be to sell it and use that money to acquire a rental property or two, putting 20% down on each, and then hopefully continue to do actual fix and flips with the remainder. This is potentially a 200k+ profit minus the cost of repairs
I am doing all the research I can, reading books, spending hours a day on BP as well as watching videos and listening to podcasts but I still have lots to learn and feel a bit overwhelmed by the entirety of it all. Any input is appreciated, I have an incredible hunger to take this home and kickstart my career and the rest of my life.
Thank you for taking your time to read my long winded post.
-Alex