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Updated almost 18 years ago on . Most recent reply
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Rentals or Flips for starting out?
Also on the subject of being new to real estate, what do you all think is better; buying a single house to flip or buying a house to rent out to a tenant? I still live in an apartment right now and pay 470 per month plus utilities. Granted I have two roommates that pay half of the rent. I'm just wondering which is better to start out with. I want to get out of having to liive in a place where I'm throwing my money away on rent, but I'm thinking that I could also make alot of money with a rental property.
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I'm assuming that you don't have a lot of capital. So therefore you need to start flipping homes. Again my formula for doing that is that you have to flip them as fast as humanly possible. No waiting around to cover a few mortgage payments. Do the renos in a week and flip it in a month. Just do carpet and paint only, regardless of other stuff. That will cover 95% of the dwelling. Your not living in it, so it doesn't have to be perfect. It won't have to be perfect to sell it. Just carpet and paint because that you can tackle in a week. If you do anything else that's when you start adding more work for yourself that necessary. Do it on your Home Depot card that way you defer payment for 6 months. And relist the same day you take possession. That way you could do many flips in 1 years time. Each one leveraged into a larger deal. That way your capital gets leveraged more and more, and you make exponentially more each flip. In no time you'll have $100k saved. With that you can go shopping for a 1m dollar apartment building. All you need is 10% down to buy an apartment which will set you up for life.