Living in someone else's flip

[William Donaldson]

In the summer I will be relocating Charlotte, NC to begin my first full-time position after college. I lived there over the past summer while I was interning, and I know renting can get a bit pricey, especially within a decent distance of where I will be working (Uptown). I love making money and dislike spending money, so I'm entertaining an idea that may or may not be viable, but I wanted to get opinions/advice before proceeding any further.

Because I do not have a family or many personal possessions, I thought it could be a win-win if I lived in a property that is being rehabbed by an investor.

The pros and cons for me as a young professional interested in investing are pretty obvious: I live (potentially) rent-free, enabling me to save more money to invest. I also have the opportunity to watch a rehab in progress. But the situation could get uncomfortable - bathrooms in constant state of remodel, kitchen countertops not installed for weeks, etc.

The pros that I see for an investor is that they have someone living in their flip, dramatically reducing the risk of theft, vandalism, or some overnight catastrophe (e.g. leak damaging flooring, etc.). They also have someone they can call at any time to get a progress update with pictures/video instead of having to visit the property themselves. I also wouldn't mind helping out with any projects that they wish to perform themselves. There aren't too many cons that I could see. I'd keep the place clean, because I'm a clean person in general, but also because it'd be the right thing to do in the situation. We'd have to arrange something for move-out, since they may want the place unoccupied once it is finished. But that's not a big deal, because it would only take me an afternoon to pack up and move to the next place!

So, BP, what do you think? If you think it's a good idea, how would you recommend I find investors in the area to see if they would be interested in the arrangement? Thanks in advance for any input!

[Michael Herr]

most people try to get flips done quick.

If you found someone who goes slow, might be great. I don't see it going well though.

I had some war-zone properties get copper wire stolen. One was vacant for two days.

This scared me, so I hired a guy I sort of knew to squat for me and babysit my next vacancy.

It caused it to drag out my repairs and showing process. He moved around to 3 houses before letting some friends stay with him, I had trouble getting them to leave, and I had no backbone then (ive since grown it a bit)

I ended up renting to them and as you can imagine when the free ride ended it didnt go well.

I've since left the war-zones, and wouldn't consider hiring a squatter.

I don't want to invest in an area where this is needed. And if it's not needed it's too much risk for me to agree to it.

I do occasionally hire an illiterate handyman with no driver's license. (family friend: lots of trust-long storyl He stays at the house for a week or so while doing a kitchen or bath remodel.

I trust him completely, alot of trust is the only way you could work that deal out.