Too Early To Flip?

Question

Hi all. I am looking to get into real estate investing and am considering flipping vs BRRR. Is flipping as a first investment too early? I figured it would be a way to expedite gaining capital to invest in other properties. Obviously, there is risk, but what should I consider? I have family that owns small contracting/construction businesses that I figured is an advantage. If I flip, it would be local. I am a little handy and willing to get my hands dirty, and my dad is extremely handy. I figure it could be a great bonding experience, as he enjoys doing this type of work (he has done plumbing, framing, electrical, etc. and can fix anything).

Jaron Walling · Answer

@Alex Holmstrom Just because your dad runs a construction business does not mean he understand REI. My parents are handy and my mom has operated a painting business for the last 10 years. I'm hands on when we renovate properties. It drives higher quality and causes less stress when you hold rentals. Neither of my parents know what a "BRRRR" deal is. They don't know how to run numbers. I recently employed my dad help me do landscaping. He saved me about $3k in landscaping and tree removal costs. It was good exercise for both of us and moved the needle forward. His contribution was time and labor which I'm grateful for. I don't know how you frame it but everyone on your REI team needs a lane. The plumbing guys, carpentry guys, your dad even, it's an orchestra and you're the conductor.

You have a strong competitive advantage. Explain the strategies and numbers at a 5th grade level. If you connect the dots you could tackle a flip, stay on a timeline, follow a budget, and hopefully be profitable. At a minimum you'll end up with a quality rental property.

Everyone on your team needs a base level of knowledge so you can get to the finish line together. My dad isn't materially connected to the property I mentioned above but he's still part of our team and helping us achieve our goals.

Corby Goade · Answer

Doesn't really matter- there's not a "best" way to invest. You just need to know that your first few deals of any kind will be messy at best.

I've seen novice flippers take three years to turn a property at a huge loss. I've seen super experienced flippers turn a property in six weeks for six figure returns. Experience matters, but you have to start somewhere, so just get going!

Pierre Guirguis · Answer

Flipping isn’t too early, but it’s not the shortcut people think it is. The rehab is usually the easy part. The risk is in the stuff around it such as timeline, carry costs, inspections, buyer financing, and surprises you didn’t underwrite.

Having family in construction is a real advantage, just make sure scope, budget, and roles are clear up front. That’s where most “easy flips” get messy.

One thing I’d think about as a first deal: if things take longer or cost more than expected, could you hold it as a rental without stress? If yes, you’ve got a lot more room for error. If no, the margin needs to be very real.

BRRRRs are slower but more forgiving. Flips are faster, but binary. You’re either right or you’re not.

Aaron Zimmerman · Answer

Why not BRRRR the property if you can and then flip if it doesnt make sense to BRRRR?

Aaron Raffaelli · Answer

I am in the middle of flipping a single family house to earn the down payment for a multi family house hack. I am the only one working on it as I didn’t have enough money to hire contractors. my expected finish date was august but I’m still about 3/4 of the way done. I no longer have afternoons or weekends because my life was sucked up into that damn house and I can’t wait to sell it. I will need to look back and analyze it to know if i regret the buy or not, but I will have to contrast how much I have learned/money I made with the year of my life i spent working on that house. I don’t want to discourage, just give a real world perspective on what it’s like to work on it yourself if you also have a full time job

Frank Lovaas · Answer

Great question and honestly you are thinking about this the right way already.

Flipping is not too early as a first investment if you treat it like a business and not a gamble. The biggest risk with flips is not the work itself, it is buying wrong, underestimating repairs or running out of cash before the project is done. The fact that you have family in construction and a hands on dad is a huge advantage. That lowers costs, shortens timelines and helps you avoid bad contractors which is one of the biggest problems new investors face.

BRRR is usually more forgiving long term because you can hold the property, refinance and build wealth slowly, but it takes patience and solid financing. Flipping can build faster cash, but only if you buy well below value and keep the rehab tight. A smart path for many beginners is doing a conservative flip that could also be rented if the market shifts. That way you have two exits instead of one.

What’s in it for you to think this through carefully is simple. One good first deal builds confidence, capital and lender trust. One bad first deal can drain savings and kill momentum. Since you have labor access and local knowledge, your odds are already better than most beginners.

If you were to start, I would focus on smaller cosmetic flips first, something with clean numbers, solid comps and room for mistakes. Treat it like school, not a lottery ticket.

Out of curiosity, have you started thinking about how you would fund that first deal if the right opportunity showed up?

Alan Asriants · Answer

You make money when you buy the deal. If you buy the deal right you should be able to make it out on top even going through some hurdles. Its best to partner with someone more experienced for your first one to avoid getting burned. Be the person that hunts for deals and bring it to an experienced investors. Agree up front to share profits, put in your sweat equity and get started that way. In the meantime I would search for a house hack as the barrier to entry is much lower. one does not affect the other

Alfath Ahmed · Answer

Ultimately flipping will be the better way to make money BUT you can also lose your shirt if you mess up. It is better to start with some capital and purchase BRRRR/value-add deals at 75% ARV and go through the entire process on a cosmetic rehab.

Once you feel comfortable with the Scope of Work, and understanding deal flow, hard-money terms, refinance vs. profitablity terms, then you are in a much better spot to sell your flip and make money.

Ollie Wright · Answer

Since you're weighing this against BRRR to build capital, just watch your holding costs. Whether you’re using hard money or private capital, every month that project sits unfinished is money leaking out of your pocket. As someone on the note/debt side of things, I see a lot of newbies nail the renovation but lose their profit to interest and carrying costs because the "bonding time" took longer than expected.

Bo Smith · Answer

Having family in construction is a huge advantage - most new flippers get killed by contractor delays and overruns. Run your numbers assuming 20% longer timeline and 15% higher costs than estimates. Are you planning cosmetic rehabs or tackling structural work with your dad's skills?

Too Early To Flip?

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