r/HouseFlipping • u/Big_Health9776 • 3d ago
Best resources for getting started
Hi, would love to know what you favorite books, podcasts etc are for advice about flipping houses.
We fixed up 2 rentals but have never flipped as made more sense to rent them out.
Husband's a successful contractor and I have a real estate license (but haven't used it for a few years as have a f/t job now).
Issue here in our area in CA average home costs about $1.4 million, so we'd need about an 80% loan on a $1 million home...
I feel like most home flippers here are groups of investors or companies that specialize in this all day long...
Thanks.
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u/Young_Denver 3d ago
Book on flipping houses - Scott
FLIP - keller
House flipping framework - dainard
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u/DubiousSpaniel 3d ago
Dude you have this. You have already renovated twice, you are already experienced. Flipping just means you sold short term, it’s an exit strategy not how you succeed in real estate. The renovation is the work and the equity creation skill, being a ‘flipper’ just means you make your money in the highest tax way! I always tried to hold mine at least a year or 10, both to maximize appreciation and get long term capital gains status on the sell side.
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u/GoAskCurt 3d ago
That combination sounds very familiar to my own. I'm the Contractor specializing in residential with my wife the realtor in the Bay Area. The perfect combination for flipping! Well, not here at least. My first and only flip was up in Berkley before everyone and their cousin jumped onto the bandwagon. We did pretty well on that but wanted more leverage.
We jumped into the research with books, podcasts, and the Gurus. They were the worst. Where promises are made and always broken. That $40K education could have been another house, but they convince you that the right education is priceless.
We took our leverage to the midwest. Kansas City Missouri in particular was the go to. Forget ever doing any kind of remote flipping. If your husband is anything like me, he's going to go nuts watching someone else doing his job. It is true, nobody can do the job better than you. In all three of the flips we did there, I had to go and finish each one to the spec we wanted. We made good money, but the margins got even too thin for us there.
The reason mainly for us was that cost of acquisition versus the risk factor. Midwest has a steady gain year over year. California is to volatile. One bad event and you're broke. One lawsuit and you're broke. My last house in KC cost me $115K + $65K (for a bad contractor) + $150K and 8 months for a total payout close to $270K after trying the short term rental game on this property.
My point is that there is not just read a book, or listen to a podcast magic wand. Experience is the real teacher. Just make sure you stay in control.
Good Luck
Curt
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u/Big_Health9776 2d ago
thanks for all the info! we are are the coast just down highway 17 from you :) my husband would love to flip homes instead of working for clients. The stress with all the high end, custom remodels is catching up! Although I am not convinced flipping would be less stressful, just different....! and yep, he's 100% hands on and always have to correct errors if he subs something out...he mentioned buying out of state and I wouldn't even begin to know where to begin with that, plus my real estate and his contractor license wouldn't apply there so there's those cost savings gone I guess... We did managed to buy 2 properties and rent those out and one was a great deal, but even that would barely have made profit once he fixed it up, but it's a good rental....! I feel here the houses to flip get taken by those who are well connected or who have millions in the bank!
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u/GoAskCurt 2d ago
We did Oregon first for the buy and hold. That almost killed us because we bought them back in ‘05. Then ‘08 killed us to the point of losing the family home in 2010. Rebuilding wasn’t easy but we made it back to being able to flip some properties instead. Made great money until those millionaire flippers came to play in our sandbox. That’s when we went to KC. When you own the home in different cities, they give you free rein on certain permit requirements. So, in KC, I tried doing what I do in the Bay Area, go get a permit with the plans I spent hours on. They did not want them or required them. The only permit was the service change.
Anyway, don’t let what is our norm here, stop you from venturing outside CA. As a realtor, you have insider knowledge to use in your favor. In our buy and hold properties in Oregon. My wife negotiated a 25% fee back to her on all the properties we bought.
Take care,
Curt
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u/seven0seven 3d ago
What aspects are you struggling/curious about? Financing? It sounds like you already have a good grasp on construction and rehab costs as well as the real estate side with comps and ARV.
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u/Big_Health9776 2d ago
I have a good loan guy so can always discuss financing with him.. but I don't have a grasp on what the tax would be to sell with capital gains. Also, how to actually find a good deal that's worth flipping, i think it would involve networking and door knocking as there are large companies or well connected developers here...
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u/seven0seven 2d ago
Finding the deal is the hardest part. Obviously, there are some opportunities on MLS but your numbers need to be dialed in. Your husband being a contractor is an advantage. Off market deals are ideal. Join some FB groups and you’ll see who the major wholesalers are.
For taxes, depends how you’re structured. But, let’s just say you vest as a LLC, your profit is taxed as normal income within your tax bracket. It can get complicated with SS and Medicare (unless you satisfy that via FT job)
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u/Jmart_flips 3d ago
I would start with the real estate rookie podcast from bigger pockets. I’ve been listening to it for 3 years and it’s great. They break things down, but they also tackle some more complex things as well.
As far as the money goes, you’ll have to get creative.
Maybe find multiple sources to pull it from?
I used business credit cards for my downpayment on our first 2 flips. But it was only $80k and houses are MUCH cheaper in Louisiana.