Can I Flip Houses For A Living Right Out of College?

Question

I am going to graduate college at 21 next year and plan on jumping right in on flipping houses as my main source of income.

In addition, I plan to work a part time job in order to keep saving money and help offset my monthly living expenses until I'm flipping enough to live comfortably on that income alone.

Is this a wise decision? Or should I get a more stable job and work more hours and in return only work on flip houses in my off time.

Any advice is appreciated.

Justin V. · Answer

@Anthony Caraballo

I’d recommend getting a W2 job with your degree and do flipping. You went to school so I assume that you have some passion for your field of study. My w2 makes financing deals and funding flips easier.

Your 9-5 pays the bills. Your 6-10 builds your empire. - somebody’s quote

Will Barnard · Answer

I agree with the above advice that it is a good plan to start young and to educate yourself on the local market as well as the ins and outs of a rehabbing business. Capital, deal flow, and team are 3 major factors you need.

That said, I am going to give you some advice that I wish I would have done much much earlier on and that is, keep more than you flip! Flipping and the instant cash injections from profits are great, but you lose 40% of it to taxes (not exact, just a round number to toss out) and once you stop flipping, so does the income.

Look to BRRRR (buy, rehab, refinance, rinse and repeat) at least one asset for every few flips you do. The tax benefits, appreciation, and cash flow over the next 30 years will make you more than all your flips combined if you do it right. If you take any advice, take this and thank me in 10 years.

Greg Dickerson · Answer

You can definitely succeed right out of college. The first step is to Educate yourself on the market you want to flip houses. Learn how to evaluate properties, find deals and study what’s selling and where. It’s all about educating yourself on the market and the business.

Gabriel Noto · Answer

Hi Anthony,

For what it is worth, you have some good advice above, but I'll offer an alternative perspective for thought.  I wish I started buying and flipping when I was younger.. I would have accomplished so much more. So don't be disocuraged, just take the advice, read up, understand the risks and remember, you don't make money when you sell a house, you make it when you buy it at the right price!   I suspect you will eventually be a huge success!  Good luck and understand the risks and the potential rewards of flipping and you will do just fine!

Keaton M. · Answer

@Anthony Caraballo I’m not a flipper so take it with a grain of salt. I’m not sure what your degree is in but going this route pretty much makes the degree useless since you won’t be using it. Flipping also takes time and money. So unless you have a big cash reserve starting out, you will he burying yourself in debt with hopes of a big return from the flip multiple months down the road. I strongly recommend against this route.

Mack Meyer · Answer

@Anthony Caraballo

Hi Anthony. I have a wide variety of clients that range in age,

Show that it is not necessary age that is concern or that your right of college. A few things I would you (obviously don’t need you to answer on the forum)

1.￼Does your family/friends/mentors have any real estate experience? Those are always important when start.

2. Whats your access to capital look like? Do you have some cash? Line of credit? Possibly Family and friends money that they want to invest.

3. Do you plan on having co borrowers with you that have a track record?

4. Are you going to do the rehab or will you hire a GC (general contractor)?

5. How do you plan to finance the projects!

Sean Poulos · Answer

@Anthony CaraballoSpend your time this year educating yourself on costs to do so, J Scott has excellent books on this. Then, make sure you have a team assembled to take on the projects and develop a system in place. Of course, you will need capital and reserves so make sure you save up some money. Lastly, have contingency plans and exit strategies in place. Good luck!

Anthony Caraballo · Answer

@Will Barnard It is interesting you say that because that is actually the method of Real Estate Investing that interests me the most. I like that fact that I will be able to hold the properties for a long time and be receiving monthly cash flow while having my tenants pay down the principal at the same time. It gives me the benefits of flipping and raising the value of a house while still holding on to the property and growing my assets overtime. Also I feel that being able to pull money out of the deal will be very helpful.

Anthony Caraballo · Answer

@Sean Poulos @Greg Dickerson Thank you, I will continue to educate myself and get things in place for when I graduate. Thank you for your advice.

Can I Flip Houses For A Living Right Out of College?

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