Posted by HR on March 12, 2000 at 13:45:50:
You are focused on the wrong game plan, in my opinion. A flip is when you get a property under contract, and then sell the contract to another, or do a simultaneous closing wherein you buy the property in the am from your seller (with your buyer’s money) and then resell it that pm to your seller.
For example, you might get a fixer upper under contract for 30k, that after 15k in work will be worth 100k. You “flip” it to a contractor and make 5k.
If this is all greek to you, than you need to read Jackie Lange’s articles on flipping, do an archive search on flipping and read all the posts, and read about flipping in Lumley’s book, the 5 Magic Paths to making a fortune in real estate ($15).
With flips you need no money and no credit (other than maybe $1000 for earnest money deposits.)
Don’t waste your time with CS’ buy and hold strategy. Why do you really want to do that? (Because it’s the only way you know how to make money in re). Forget CS. Learn techniques that can put cash in your pocket within 14 days. No joke.
Pay down your credit card debt, then when you are ready to look for a home for yourself (or you are in a position to take on rental property), then look at CS stuff.
Attending to rental property in college? I can’t think of anything more distasteful. You should be learning about ancient civilizations, arguing moot points with your peers, and otherwise spending your time frivolously. That’s what college is for. Cleaning toilets and screening tenants while in college? Yuck!
Learn to flip. It will give you LOTS of beer money. (In fact, depending on how proficient you get at it, you might one day be able to buy a brewery).
Just my 2 cents.
PS. I am aware I didn’t answer your question; that’s because you are asking the wrong question. You are getting off track, deep into the woods of confusion and frustration. You do not appear to be in a position to do buy and hold yet. A better question is "How do I generate nice sums of fast cash without any credit or cash, especially since I am in college?"
That will focus you in the right direction. I’ve already given you my answer. Others may have different thoughts.