Looking for Advice on My First House Flip

[Jose A Perez]

Hello, Bigger Pockets family. I am a general contractor looking to do my first flip within the next 4-6 months in Omaha, NE, and eventually transition into a full-time real estate investor. My fiance's dad recently (and thankfully) "forced" me into the real estate investing world by offering to fund a flip 100%! At first, I didn't realize how fortunate I was to have this opportunity presented to me as I just saw it as a big cash loan to buy a house then pay off the same as I would a mortgage. But after talking to my cousin, who is a real estate investor. He helped me realize that this flip could fund my next investment and hopefully gives me a good head start on the rest of my investing life. My first order of business in this project is education. Please feel free to drop any tips, warnings, blogs, or videos that have helped you on your journey to your first flip! I really appreciate any help you can provide. 

[Jody Sperling]

If you flip the house and sell it, you'll pay the highest taxes possible, and all you'll have to show for your hard work at the end is money. If you rehab the house, rent it to tenants and refinance your money back out, you'll have no taxable event, money to repay your loan, and a long-term, cash-flowing asset.

There are definitely situations where a flip makes the most sense. My wife and I are embarking on a two-year live-in flip this summer, and in the vast majority of cases, holding rental real estate is the best possible choice. Anything you'd dislike about owning rentals is something you can pay someone else, so don't let the fear of evictions or nightmare tenants scare you from becoming a landlord.

Best of luck!