Looking for advice on my first flip

[Andrew Clark]

Hello my name is Andrew and I'm from North West Indiana. I am trying to get my feet wet in the house flipping business and get my first flip under my belt. I have about 20-25k to invest in a flip. I am looking for anyone out there with experience to give me some advice on what the best way to go about it would be. Thanks a lot!

[Shawn Holsapple]

Welcome to BP @Andrew Clark!

Do you have a team built yet?  Investor friendly realtor, contractor, Attorney, Insurance Broker, Lender, etc.

What part of NW Indiana are you looking to flip in?

With $25k to work with, you might have to partner with someone in order to get into a decent property.

I assume you are using the 65% Rule or something similar? [ARV [after repair value] x 65% - rehab = MAO [max allowable offer].

So, if you are looking at a lower end home in a solid blue collar neighborhood that is less than 50% rentals with an ARV of $79,900 & it needs $20k in rehab you will need to buy it for $31k. [$79k x 65% = $51k - $20k rehab = $31k MAO.

IMHO - I wouldn't "retail flip" anything under $79k ARV. Otherwise, you might want to look at buying a lower cost home and making it rent ready to offer as a turn key rental to an investor.

I hope that helps.

- it's always good to see another Hoosier utilizing this great site!

Of course, you need to read The Ultimate Beginners Guide to REI here on BP

If you haven’t already, please read/listen to these books ASAP!

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-... - LISTEN TO THIS TODAY!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The 10X Rule

The E-Myth

The 4 Hour Work Week

BiggerPocketsPodCast -I hear #136 is exceptional!

Wholesaling101 You Tube Channel

Kent Clothier – You Tube Memphs Invest channel