Taking My 1st Baby Steps

[Jason Rivera]

I was originally planning to buy & hold and after doing a ton of research, I decided to switch to a fix and flip strategy and revisit buy and hold in a year or 2. The 2 deciding factors were my plan to move out of my current place in a year or 2 and the fact that I'm not allowed to register a business to my current address.

I took my 1st steps in the fix and flip direction over the weekend. I'm going to partner with a relative with a much more flexible schedule than mine who can work with contractors that he's already formed relationships with. We'll invest 50 / 50 and split the profits (or hopefully not the losses) down the middle. I met with an agent over the weekend and gave him my criteria and he's going to send us a list of properties that meet it. 

I explained to him that I'm following the 70% rule and I think he and I are on the same page. We're probably looking at low income neighborhoods on fairly busy streets and/or near public transportation. (No dimly lit blocks tucked away somewhere).

Once I get the list, I'll work with my partner, who can better estimate what a rehab will cost, to make sure we're in the 70% (I'll take that opportunity to start learning how to estimate a rehap... checklists will become my best friend). I'll also review the property to see if it's a viable buy & hold if for some reason things happen to make the flip unprofitable... plus, hey, I did all this buy & hold learning, might as well use it.