Hello my name is Keith and I am a recently retired Navy veteran with a burning desire to get into real estate investing. I am interested in rehabbing and flipping however I would like to see if I can share my two concerns. Not being wealthy by any stretch and without much start-up capital, how realistically is it to start with little or no money.. I know the info commercials make it seem easy but I would like to hear from investors who are actually dealing with reality. Also is there a way to have buyers waiting for your property once it is finished to eliminate holding the property for a long period of time? Any help with those two concerns or if you could point me in the right direction it would be greatly appreciated. Thanks in advance.
Instead of trying to flip with no money you can use your VA loan benefits to buy a duplex or up to a fourplex. Live in one unit and rent the others out. I own a house in Texas that I bought with a VA loan thats rented out right now since i'm currently overseas. You can do a 0% down payment with a VA loan. The VA loan has a fee of $1,500 but you can wrap it into the mortgage on the house. My closing costs were under probably $1,000 but the house I bought was only around $75k.
@Keith Harper . Probably helpful if you would tell us where you currently located or where you want to begin investing.
With that, we could probably offer more pertinent comments.
Wishing you steady and calm seas wit the wind at your back.
@Keith Harper - Check out t
Thanks for the response Jim. I’m located in Milwaukee, Wisconsin and am interested in investing here.
Keith, flipping is not investing. It is a job and you are right HGTV makes it look easy. And it's not. Many loose money on their first flip. I would say average margins are in the teens and so you need to flip about a home a month before it makes sense. When you start thinking along these lines (repetitive, sustainable business - not a one time flash in the pan windfall) your picture will become more realistic. And if you do volume you can handle a few losses as they average out. Volume also lowers your cost and gives you access to better contractors. You get more experience and your quality goes up. So do you profits. I agree with Gerhard, renting properties is easier and much more forgiving - plus it is actually investing.
Thanks, Marcus. I appreciate the reply. At this point I’m new and I’m kind of wary of being a landlord. The idea of turning over the property for a profit seems a little more of what I’m interested in. I’ve had a couple of personal properties that I had rehabbed and my contractor suggested the flipping idea. Since I’m new in real estate, and at my age, I would like to generate a supplemental income in my retirement even if it’s just one or two properties a quarter. With a contractor on board I’m hoping that will alleviate the most difficult part of the equation. That is why my interest is so high. Am I being realistic or do you think rental is still the best avenue? Any thoughts would be appreciated.
welcome to the community and congrats on your retirement. You are taking a great first step, the learning step. It took me 4 years to go from watching on the sidelines to finally making the plunge.
It all depends. Are you working in your retirement or just living off the military retirement checks? It depends on what you want to do. You don’t have to be a landlord to own rental properties. That’s why they created property management companies.
The only recommendation I have is to learn as much as you can about what type of real estate you want then take the plunge.
I do buy and hold. But that’s what I’m comfortable with. I don’t want to manage a contracting crew daily or weekly for flips.
Thanks for the response, Eric. Right now I live on my retirement checks in the Midwest so I’m very comfortable. However I don’t work anymore and I’m bored to tears. The main reason I’m leaning towards rehabbing and flipping is because my friend owns a contracting business and suggested the idea. From what I’m learning, a dependable contractor is key. With that in mind my other concern is how long it would actually take me to get rid of the property. From what I’m learning finding a good real estate agent is key to that. So based on those two factors I started leaning towards this area of real estate. I’m open to any suggestions or directions I can get pointed in. Thanks again for taking the time to respond. I appreciate it.