Hi all!
Detroit is booming right now and this Newbie wants in. My plan is to start flipping homes to build up my cash on hand, then buy and hold for passive income.
From research and speaking with current flippers, there are many homes in Detroit that can be purchased for $30k-$50k, rehabbed for <$10k, and sold for $80k-130k (depending on area) in A, B neighborhoods. I usually use online sources to find potential flips and have also seen some "renovated" or "renovations started" homes for <$40k and multi-units for <$50k in C, D neighborhoods. With these assumptions and my small amount of cash savings, I would need a lender for the home purchase (could someone tell me about land contracts?) but could pay for all rehab work for a good flip.
I have a method for choosing good flip properties, but have been considering starting with a multi-unit instead. Would a multi-unit as a first flip or investment be too much to start given my limited startup funds? What are others currently doing in Detroit? Is it unusual to see "renovated" homes for $40k?
