Should I get another temporary high paying job before investing?

Question

Hey guys,I have a problem I hope you can help me with.Currently, I am working a job I am speculating will end some time in the next month or so (maybe sooner but who knows). I am making $42/hr with no benefits (being taught pipefitting for the union, but God this job sucks). This job, though admittedly pays well ($5200/mo after taxes), does not help me towards my goals of learning about house flipping/BRRRR. Once this job ends, I might have an opportunity to go back to California (that's where I'm from) and work another dead end job (doing the same thing) for $55/hr for another couple of months, but unsure if it'll pan out. Currently I am studying all I can to educate myself to (hopefully soon) purchase my first investment.Hypothetically, if I were to take a job in RE (property management for example), my estimated hourly rate would be $15/hr., which would equal approximately $1800/mo working full time. In order to make ends meet, I would have to flip a house and have at least $15,000 profit every 4 months. So, the question is, should I more so consider working in the RE field (i.e. property management team, working in a bank, etc) or just do these temp jobs to build a little more capital before beginning?

Matt K. · Answer

How many deals have you lost out on because you were just to busy doing your pipefitter job? Probably, 0. You're going to have a much easier time being able to actually follow through with this goal if you have a source of income.....Go find a job in area (midwest for example) that has low cost to buy houses, then buy one and do a live in flip. Do not move back to CA for 13/hr more and expect that you'd be able to flip a house....Once you get a track record, prove that you know what you're doing and can actually do it, and show investors you can pay them back, then you can quit.

Dan D. · Answer

Brandon, you make a very good point about the cash flowing properties. It's giving me a lot to think about. Thank you

Dan D. · Answer

Great advice guys, I really appreciate it. I get what you guys are saying, just stick it out and invest when you can. Staying in my current field of experience is key if I am looking to conventionally finance my first or future deals.

Shawn Mcenteer · Answer

Hi @Dan D. Let me be the first to tell you your current job is NOT a dead end job unless you let it be. I started installing floors in me early 20s I purchased first house mid 20's (horrible deal) I sold house and purchased MFR in my late 20s and currently live close to rent free in a highly desirable area 25 min west of NYC. At one point in my journey I almost gave up flooring to pursue REI as a full time realtor, thank goodness I did not. It was my flooring income that qualified me for lending. I still am an active realtor, I still install flooring and im 24/7 REI. Your income as a pipe fitter will go a long way, if you enter a new field you will likely have to start over from a lending perceptive. If you don't care for lending and are looking to do wholesaling or real estate agent you can start off part time after work.

Caleb Heimsoth · Answer

Dan D. If n my opinion you should continue working as a pipe fitter for a while until you get several deals under your belt.

Brandon L. · Answer

@Dan D. I would not consider your occupation a "dead end" you are getting paid well, and I am sure if this job ends you could find one that is similar. Short answer- get paid as much as you can while you invest. 2 or 3 cash flowing properties will bring in what you would get paid at a 15.00 dollar an hour job. Feel free to reach out privately if you have any other questions.

Amy Beth · Answer

I would stick to your current industry because the money is good and you do not need to be working in property management to learn about real estate. I would continue studying real estate outside of work. Also California has a high cost of living so it may make it harder to pursue real estate if you move there than most other parts of the country.

Ali Boone · Answer

The reality is that any of those RE-related jobs will probably teach you good stuff specifically related to whatever you're doing, but it's not going to teach you the bigger picture of stuff you'd need to know to flip a house or whatever you decide to do. So you'd be making pennies while not getting much in return. Flipping and all those--just about everyone has to teach themselves that. And by teach themselves, figure out where to learn it. Maybe it's BP or printed books by various authors or networking events, etc. I don't think anyone learns it from a job, unless they happen to work for a flipper. So with that said, I'm leaning more towards the higher paid gigs as well, while you teach yourself REI on the side. You'll have to teach yourself anyway then at least you're making better money to be able to invest later on.

Julie N. · Answer

I agree. You will need the good income to qualify for financing. Learn as you go. Buy a house and just go for it.