So you want to try flipping a house, but you have decided that it is simply too expensive and risky for you? Have you done the math and realized that if all does not go well with the project, you could put yourself into an extremely bad position financially? That mortgage payment is not going to pay itself if the house does not sell quickly. Well, kudos to you for having the common sense to truly figure out the financial risks involved in such a venture as flipping a house.
There is a way around this problem if you are truly excited about the idea of flipping a house to make a profit. To state the obvious, you have to live somewhere. One way or another, you will have a housing cost whether it is rent or a mortgage payment. Why not try living in the house that you intend to flip while you are doing the remodeling that is required to develop it into a more valuable property?
This idea is not a realistic option for everyone. First of all, it depends on exactly how much work needs to be done on the property and how willing you are to live in chaos for a few months. If the house needs to be totally gutted and you are fond of being surrounded by actual walls, you may not want to tackle this project. If extensive plumbing and electrical work needs to be done and you are not a big fan of living primitively, this may not be for you.
Another factor to consider is how willing you are to pack up and move every few months. If you have children this type of project is probably not a good idea because it will be very disruptive to their lives.
But … if you are single, or a couple willing to put a lot of sweat, possibly a little blood, and probably a few tears into a project, this could well be a good idea for you. Ideally, you would spend a few years living in the homes that you intend to flip, selling them, and then reinvesting in the next one until you are financially comfortable enough – and have gained enough knowledge about the art of flipping a home – that you can afford to do this without actually living in the mess, and without having such a huge and scary financial risk.
