Lancaster, PA · Member since 2015 · 24 posts · 1 vote
so recently i was told with our financials we really shouldnt or couldnt start our investment path by flipping houses... our vision (uneducated newbie vision) was to flip a few houses inorder to put 20% CASH down on our first rental for bigger cash flow and more units...
we only have 18k available (leveraged)
we have the people for the work
we are finding some good properties on the market
I work 60hrs a week and have 2 small children
the advisor is a good one and i believe is looking out for us... suggesting a more conservative approach to buying the rental first and going into the second rental with equity...
Investor · Lancaster, PA · Member since 2014 · 53 posts · 60 votes
11y
The truth is that in this area it is very difficult to find a good deal for a flip. The margins are small, which make it more likely to not get a profit (or lose money). It's very easy to lose money on the first flip.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
11y
Most of your profit will go to paying the IRS and sales commissions. The spread at the buy has to be HUGE! Without a homerun deal, you're just feeding the 2 mentioned above. Good luck!
Investor · Nashville, TN · Member since 2015 · 688 posts · 607 votes
11y
Be wary of financial advisors. You should go find the deal, if it's a deal, someone will find it. You can obtain private funding for any deal. Do not limit yourself because someone says you can't do something. Stop thinking that you can't do something and start asking how can I do this? You could get private money, you could partner with an investor on the deal, you could get the homeowner to carry the note so you get the house no money down.