First time Flipper (Starting with $13,000 in reserves)
Member since 2025 · 13 posts · 10 votes
First time Flipper (Starting with $13,000 in reserves)
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votesothers might have different answers, but in my opinion... it's just not enough. it's just really difficult to go out and do a one-off, home run flip. you're competing against others for inventory, contractors, etc.
i would just keep saving up until you're ready to house hack. losing money at this point would be a huge step backwards.
15 Replies
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
others might have different answers, but in my opinion... it's just not enough. it's just really difficult to go out and do a one-off, home run flip. you're competing against others for inventory, contractors, etc.
i would just keep saving up until you're ready to house hack. losing money at this point would be a huge step backwards.
- Lender · Hinton, WV · Member since 2025 · 128 posts · 53 votes1y
Evan — love the drive, and congrats on graduating! With $13k, you’re already ahead of most people your age because you’ve saved capital and you’re thinking strategically.
A few thoughts:
• $13k Alone for a Flip: Realistically, that’s not enough to cover a down payment, closing costs, holding, and rehab out of pocket. Most hard money lenders want to see at least 10–20% of the project covered by the investor.
• How to Stretch It: You can absolutely combine your $13k with family/friends as equity partners. You bring the hustle, they bring extra cash, and you all share the upside.
• Alternative Plays: Instead of a full flip, you might look at wholesaling (build cash reserves quickly) or a house hack with FHA/Conventional when it’s feasible.
• Trailers / Low-Cost Properties: Mobile homes and smaller distressed properties can be an entry point, but resale/financing is trickier. If you go this route, make sure comps support your exit.
On my side, I help investors get funded for flips (up to 90% purchase + 100% rehab, not to exceed 75% ARV). That means if you can bring in ~$25k–$35k between your savings and a partner, we can structure the rest of the deal through financing.
Biggest advice: don’t get discouraged by the cash gap. Partnering + creative financing is how most first-timers bridge the gap and get that first deal done.
Are you leaning more toward teaming up with family/friends on a flip, or would you want to explore something smaller/cheaper first?
- Member since 2025 · 13 posts · 10 votes1y
@Nicholas L. Thank you very much for the advice. I'll look into saving plans and strategies for ways to expand that cash until I have enough for a deal. I do have the opportunity to borrow, but I'd prefer to look at other options. House hacking is definitely of interest, and as long as I could figure out a way would be amazing!
- Member since 2025 · 13 posts · 10 votes1y
@Jackie Carmichael Each of your points has taught me something that I did not know! For future reference, understanding that most hard money lenders want to see at least 10-20% of the down payment is huge. I've considered wholesaling in the past, but, need to further research the viability of such a plan. As for the trailers, I'm planning to compare any properties (including trailers and houses) against the average of three comps sold in the last year within a 1-2 mile radius.
- Wholesaler · Irvington, NJ · Member since 2025 · 112 posts · 53 votes1y
Evan, starting with $13k will make a full flip in Chicago tough since costs add up fast, but you can definitely get your foot in the door. Look at smaller deals (like mobile homes or light cosmetic rehabs), or consider partnering with family/friends if they’re open. Another solid option is to connect with local flippers and shadow them while you build more capital. Even if your first deal isn’t a big flip, you’ll still be building skills and relationships that will pay off later.
- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 441 votes1y
Congrats on wanting to take action so early, that drive is huge. With $13K, it'll be tough to take on a full flip by yourself, since most rehabs need more cushion for surprises. Many investors in your spot start smaller : mobile homes, wholesaling, or partnering with family and friends, just to build capital and experience before jumping into bigger flips. The key is to treat even the first deal like a business: know your numbers, protect your reserves, and don't rush into something that could sink you before you start. Happy to connect and help you on your REI journey!
- Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes1y
I agree with @Nicholas L., $13k is too little to get started with flipping, at least in Chicago. Most fix & flip lenders will require 10-20% down.
I've bought house hacks with less than that but that still leaves you with little to no reserves. I recommend saving up more cash to get closer to $20k and then use that money to either (1) do a house hack (2) live in flip to put 3-5% down and fix it up over 1-2 years.
If you can partner with family or friends for your first deal, that should expand your options. Definitely worth exploring.
- 1yPeter MckernanBusiness MemberResidential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
I personally think you should take this gap year and work for a real estate flipper. You will gain a lot of knowledge and even if you find a deal for that flipper you might be have to get an equity position in the deal depending on the deal you bring to that person. This will provide a lot of info, knowledge, and overall experience for when you leave college to use for your own business success. $13,000 even in smaller markets is a small amount of money to use for flipping.
The McKernan Group4.954 Reviews - Member since 2025 · 13 posts · 10 votes1y
@Sultan Ali Thanks for the reply, I hadn't thought of shadowing local flippers or real-estate investors, so this idea is definitely eye-opening! I'll start to reach out in my local area.
- 1yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Evan Alexakos:
I've been interested in real estate for the last couple of years and just graduated from college. I'm taking a gap year before heading off to law school and desperately want to get started. As of now, I have $13,000 and a dream to get into real estate. FHA loans, househacking, and BRRRR are other possible starts, but I am in a situation where they are either not possible or not preferred. Is it possible to get into flipping with $13,000 of my own cash? Can I target trailers as a viable option? Should I look into family and friends who I know are willing to invest in the first property?
I'd prefer to do it without having to borrow money, but I can also borrow. If anybody has an interest in sharing tips with a newbie and future real estate investor, I'd very much appreciate a conversation.Might want to look into wholesaling or getting into the RE business by leasing, buying, selling or refinancing. $13k will be enough to start up your business, website, and market
LuxePrivate Investments LLC 572 Reviews- 1yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Erik Estrada:
Quote from @Evan Alexakos:
I've been interested in real estate for the last couple of years and just graduated from college. I'm taking a gap year before heading off to law school and desperately want to get started. As of now, I have $13,000 and a dream to get into real estate. FHA loans, househacking, and BRRRR are other possible starts, but I am in a situation where they are either not possible or not preferred. Is it possible to get into flipping with $13,000 of my own cash? Can I target trailers as a viable option? Should I look into family and friends who I know are willing to invest in the first property?
I'd prefer to do it without having to borrow money, but I can also borrow. If anybody has an interest in sharing tips with a newbie and future real estate investor, I'd very much appreciate a conversation.Might want to look into wholesaling or getting into the RE business by leasing, buying, selling or refinancing. $13k will be enough to start up your business, website, and market
Flipping will require a lot more money to get started. Unless you are looking at smaller homes, around $50-75k price range. Financing will be very tough and expensive around this range, so keep that in mind.
LuxePrivate Investments LLC 572 Reviews
- 1yAdam MaciasPro MemberReal Estate Consultant · Fort Collins, CO · Member since 2022 · 284 posts · 178 votes
Quote from @Evan Alexakos:
I've been interested in real estate for the last couple of years and just graduated from college. I'm taking a gap year before heading off to law school and desperately want to get started. As of now, I have $13,000 and a dream to get into real estate. FHA loans, househacking, and BRRRR are other possible starts, but I am in a situation where they are either not possible or not preferred. Is it possible to get into flipping with $13,000 of my own cash? Can I target trailers as a viable option? Should I look into family and friends who I know are willing to invest in the first property?
I'd prefer to do it without having to borrow money, but I can also borrow. If anybody has an interest in sharing tips with a newbie and future real estate investor, I'd very much appreciate a conversation.Think in terms of master and apprentice.
That helped me immensely.
You have a good amount of marketing money, and that's all that money should be focused on.
Totally just my opinion, but you must master finding deals.That's where all the money is in this business is the lead generation.
Without leads for flips, you have no business.
Because you can just partner with an investor who has more experience than you.
That's why I did 10 years ago with a really good friend of mine now.
Instead of wholesaling, I just brought him leads, we agreed on a 20% cut for
me on the total profits of the finished sale.
Which meant zero risk for me anyway because all I did was spend a little money
on marketing. There's tons of investors that'll do this with you.
No guru needed, no wholesaling needed, totally doable.
Just make sure you have the proper agreements in place to people are honest and the numbers are clear. - Real Estate Broker · Belmont, MA · Member since 2025 · 150 posts · 65 votes1y
Hi Evan,
Congrats on taking the first step! $13,000 is a solid start, though getting into traditional flips with that alone will be tough unless you structure it carefully. Targeting trailers or smaller, lower-cost properties can definitely be a viable strategy—they’re often overlooked, sell below market, and can be improved relatively quickly for cash flow or resale.Bringing in family or friends as partners is another smart way to stretch your capital, especially on your first deal. Make sure to clearly outline roles, expectations, and returns upfront—treat it like a business transaction, not just a favor.
Even if you prefer not to borrow, learning about short-term financing or lines of credit can give you more flexibility, especially if you see a deal that cash alone can’t cover. At your stage, focus on deals where the numbers are tight but doable, improvements are straightforward, and you can realistically add value without overcomplicating things.
Bottom line: start small, structure your first few deals to be low-risk, and use this period to build experience, credibility, and a network—you’ll leverage that more than anything else when you scale up.
- Real Estate Coach · Chicago, IL · Member since 2020 · 171 posts · 64 votes1y
Congrats on graduating, and welcome! It’s awesome that you’re looking to get into real estate before law school — starting early makes a huge difference long-term.
With $13K, a full flip might be tough on your own since you'll need not just acquisition money but also renovation costs and reserves. That said, there are creative ways to get started — partnering with family/friends, tackling smaller entry points like manufactured homes, or focusing on house hacking when the timing is right. The key is building a system to analyze deals so you know which opportunities are actually worth pursuing, whether it's a flip, BRRRR, or something else.
I’ve worked with several new investors at the “first deal” stage, and having that framework gave them a lot of clarity on what’s realistic with their capital and timeline. Happy to share more if you’d like to connect
- 1yBridget BrickBusiness MemberLender · Direct-to-Wholesale DSCR Loans | BRRRR & No-Seasoning Refi | 46 States · Member since 2025 · 53 posts · 11 votes
Evan, I had a client that started out with using lines of credit from his credit cards. (He used the credit stacking method.) He was able to liquidate $50k. He found a property in Philly for $100k.
With the right lender, a newbie can get a renovation loan for 15% down payment on the purchase price - in this case $15k - so the remainder $85k + the entire renovation budget of $80k was financed. He already had his GC license, but you don't need one to do your own renovations, you just need to know what you're doing.
Before buying he made sure that area was zoned for multifamily, he converted into a duplex. The ARV was $300k, in part because we were also able to sign up his preferred appraiser to the AMC panel in the refinance process.
Investors can cash-out 75-80% LTV of the new ARV. That gave him a loan of $225k, minus the $180k outstanding loans and credit. He was left with about $40k to roll into the next projects. 5 years later he has a portfolio of $30mil in RE. check out his page @newttheentrepreneur on IG. I think he still does his mentee cohorts where he teaches all of this.
I know this was an extreme example from: credit card stacking, credit liquidation, finding low value properties, lining up the renovations contractors, converting to multi-family, getting the right appraiser and appraiser value. Several things lined up perfectly in his example.
My point is to let you know your mindset and grit are in the right place, you need to have the right team of experts in place, and you have to purchase at the right price with the ARV already in mind. An example you should keep in mind, for someone with no experience you can't borrow more than 65% LTV of the ARV. For example if the ARV is $300k, you can't borrow more than 65% of that, or $195k to fund both the purchase and renovations. There are only a few markets where values are still low enough to make sense. Where there's a will there's a way, but the right team around you is paramount.
Cheers to your investment journey!
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