Primary Flipping Success Story

[Angie Castro]

I had a client come to me with a budget of $500k. She wanted to buy a house but for herself but also wanted a rental property. She had saved up around $30k.

Usually someone will use those $30k towards the down payment and closing costs of 1 house. By primary flipping we were able to make her savings go longer and get her 2 properties. HOW? Patience and strategy.

We got together and created a plan. She would first purchase a property for $300k with an FHA loan and put 3.5% down ($10,500) and live it in for a year. We got the seller to cover a big part of the closing costs. We searched for properties that if she put for rent in a year they would cash flow. She knew to have the rest of her savings on hold for her next purchase.

A year later I help her find a tenant for her current house and get pre-approved again this time for a conventional loan up to $475k. This second time she actually got to buy a house that she liked much more for $450k and had to put 5% down ($22,500) and for this one we had the builder cover all closing costs.

Through primary flipping and one year of sacrifice my client was able to get a rental property and buy her home. All with pretty much the same amount that she would have spent just in 1 house!!!