New Member- Live-in Flip Alternatives?

Question

Hey everybody. I've been lurking for a couple of days, reading and learning a LOT. This forum is really a golden nugget. I look forward to utilizing the information and cooperation here to succeed. There is a question that I think you guys could help me out with. I am a college student, and I have about 2 years before I graduate. The college I am going to requires that I live on campus. But I would like to have a property by June 2017. I was looking at a mortgage for an investment property, but the down payment is roughly 20%, which is more than I have. It seems like a common way around this is a live-in flip, because it has a much lower down payment, but I can't go that route. So is private money my only route? What should my "step 1" be?

Maximilian Marck · Answer

I really appreciate the reply. I would rather take a buy and hold approach for the very reasons you mentioned. I have also decided to extend my goal to having a property by the end of 2017. Part of that is because I will moving to Charlotte, NC, and I don't want to have both on my plate. Sufficient mentoring is a prerequisite for me; and so while the longer term goal is to own property by the end of 2017, it's made up of smaller goals that cannot be skipped. I don't expect to just go out and buy property out of the blue, but there are steps on the way there which I am not sure about. I hope that clears things up. Again, I appreciate your feedback; it's invaluable.

Carl C. · Answer

Without trying to burst your bubble, I would sincerely recommend focusing on finishing up college then look at getting yourself a place for a live in flip. There a lot involved (think $$) and you would probably be better served by focusing on your studies for the time being. This will give you time to research as much as possible about flips and investing so when you get of school out you'll be better prepared. Or to answer you question, you could go with private money but it would be tough to convince a lender to finance your first flip while you are still in school and have other priorities. I think your choices are pretty limited for flips if you don't have any money/experience/time right now. Not to say you can't do it but you should question if it is the best use of your time and resources at this moment in your life. Perhaps find an investor in your area and see if you can offer your time to provide help with their work? That could be a great way for you to learn the ropes and gain some experience.