Need help !! Advice !!

[Account Closed]

hello, my name is Kenza.

& I am very interested in starting the flipping homes business. Granted I am soooo young & of course not as rich as I would like to be now.

Meaning , when you first start... What should I do when it comes to the money? Would you guys advise a 21 year old still in school( no loans or financial aid etc..) with an okay job(banking) to get a loan? Yes I have some money in the banking but I think it's only enough to purchase the house , but everything else that comes after that ??? Nothing !

Or is it better to save more? I want to have completed something by the time I'm 25 though. I know this isn't a race or competition , there's money at stake here , but I need advice. What did you guys do? 

Ps: I live in Philadelphia , I need as many advice as I can get !!!

[James Brand]

Hey @Account Closed,

Welcome to BP and congrats on your first post!

Firstly, I believe getting educated about REI and specifically flipping is your best initial course of action. J. Scott came out with The Book on Flipping Houses which was publish by BP. There are several other great books that can be read on flipping, and a myriad of forums discuss it on BP.

That being said, flipping can be one of the more difficult REI avenues to get started in, especially if you do not have a construction background. My recommendation would be to purchase an outdated property in a good area of the city for a live-in flip. Your holding costs would be minimal as you can leverage a low interest owner-occupied loan. Additionally, you could finance your rehab in with your loan with a product like a 203k loan. Finally, holding the property for a year would allow you to avoid the short-term capital gains tax. You could also roll the profit into your next property to avoid having them taxed.

-James