How to pay for my first flip or income property?

[Mariana Pasin]

Hi All,

I am newbie to RE investment and I am wondering how I would pay for my first flip or rental income property. I first wanted a multi-family home to live in one unit and rent the other, but in my area that is no less than $500k. So I started thinking to do a small flip. Buy some small house (under $80k), not necessary close to me, rehab for no more than $30k and try to flip it. It would be a small profit, but not much money to lose while learning.

One of my main concerns is that I might need a loan, because I don't have cash to present "cash offers". I even thought about FHA loan and live in the property for at least 1 year (not sure how right or wrong this is) and later rent or try to sell. Also thought about hard money loans, but since I have no experience, the rehab could take longer than planned and I would end with massive interest...

Anyone would like to share how they started or has any suggestion how should I?

Thank you!