Inheritance, flipping advice

[Carina Corral]

I've been researching and thinking about investing in real estate for sometime now (with little money of my own), but those plans have been catapulted by a recent inheritance. My brothers have also inherited a lump sum. A total of about $100,000 altogether. In order to grow the inheritance we are hoping to flip some homes to amass cash and then my plan is to start the BRRRR method for long term, passive income.
We are hoping the $100k will cover down and renovations for our first flip. We live in California and I’ve read that San Diego is a good place to flip right now, but we are open to other places in the nation. I guess what I’m wondering is whether this sounds like a good idea right now considering the economy  and, if so, where are the best flipping areas right now?
(sorry, if this is not the right forum for this type of question! My first time here so I’m still navigating the site.)

[Nicole Holcomb]

Carina Corral welcome to BP! I am a San Diego native and absolutely love this city and all it has to offer. That being said, it is an expensive and competitive market with experienced cash buyers scooping up distressed properties left and right. As Dan mentioned flipping can be risky, so I wanted to suggest considering a house hack as your entry into real estate investing in San Diego. House hacking works amazingly well in the San Diego market and aligns well with your end goal of owning rentals.

San Diego has a robust multifamily (2-4 unit investment property) market supported by high rents that can allow for ample cash flow. There are FHA loans available for owner occupied multifamily real estate with down payments as low as 3.5%. In some multiunit situations, the borrower is able to include a portion of the rental income from the target property towards their income to increase their buying power. Start talking to lenders to see what options they can provide you and your family members, you may qualify for a larger purchase price.

In my investing experience I have benefitted most from appreciation in the San Diego market. House hacking in San Diego will allow you to capitalize on appreciation while you cash flow and live in one of the greatest cities in the country (I may be a little biased).