One million dollars in cash to invest in flipping houses

[Ramez Qubain]

Hi Guys,

I have one million dollars in cash to invest in flipping homes. shall I flip a bigger number of small value houses or fewer bigger value houses? I.e. Shall I diversify more with less risk or focus my time and energy on fewer projects?

Thanks

[Michael Seeker]

More info is needed to answer that question. Is this $1M your money or does it come from a loan or private funds or a partnership?

Do you have any experience in rehabbing?

My suggestion would be to start out with 1 or two small projects (i.e. something that would maybe only require 10-20% of your capital). Get a feel for rehabbing, see if you can make decent money on the small ones. If that turns out well, then you can scale up to larger property values and quantities.

I would strongly advise against sinking all of that $ into one deal if you don't have any experience.