How to Flip a House with Only $10,000

Every house flipper had to get their start somewhere using the resources they had available to them at the time.

But is there a minimum amount of money you need to flip a house and can you really flip a house with only $10,000?

If you only have $10,000 to invest in a house flip, it will be challenging to flip a house by yourself.  As house flipping requires a lot of capital to successfully complete.  However, if you’re willing to get creative and partner with an outside investor it is more than possible to flip a house with only $10,000.  

Best Ways to Flip a House with Only $10,000

If you only have $10,000 dollars to invest in a real estate flip, you are going to have to get creative and find a way to provide value to someone that does have the money to flip a house.  As most real estate flips usually take at least $100,000 of capital if not substantially more to complete.

However, don’t get discouraged as there are plenty of ways to get into real estate flipping with only $10,000.

Remember every full-time house flipper out there today including myself, was once trying to get started flipping houses by flipping their first house just like you.

So if you don’t have hundreds of thousands of dollars to invest in real estate flipping, let’s take a look at some of the best ways you can still flip a house even if you have limited funds to invest.  

If You Have Limited Funds Find a Partner to Flip With

The most common and perhaps the best way to get started flipping houses if you don’t have a lot of capital for investing is to partner with someone who does.

This is actually how I first got started flipping houses, as I didn’t have the funds to flip a house by myself either, so I partnered with an investor that did.  

Keep in mind though if you’re providing little to none of the capital for the flip, you are going to have to provide value in other ways beyond just money and you might even have to give a larger portion of the profits to the investor with the capital.

Use a Hard Money Loan to Finance the Flip

Hard money loans are another way to flip a house if you lack the capital needed to flip the house.

Hard money loans use the property being flipped as collateral for the flip instead of personal credit and often require little to no money down.  

In addition, a hard money loan can usually be obtained in a short period of time and can be used not only for the purchase of the property but also the rehab.

Also, as a first-time house flipper with little to no experience or capital, it is going to be difficult to get a hard money lender to lend you money.

This is because it is much easier to develop a personal connection and relationship with an individual partner as opposed to a hard money lender that is all about the numbers and nothing else.  

Remember hard money lenders are in the business of making money and minimizing risk, so they are more than likely going to be nervous about handing over a large sum of the money to a real estate investor that has never flipped a house before.

But if you can find an amazing enough deal, where it would a no-brainer for the hard money lender to make the loan, this strategy can work to flip a house with little to no money of your own.  Just make sure the loan period on the hard money loan allows you enough time to rehab and sell the house.  

Wholesaling Real Estate with Only $10,000 to Invest

Another common way many beginner house flippers got their start in house flipping without a lot of money is to wholesale real estate.  

While real estate wholesaling might not be house flipping in the truest sense of the word, it is a great way to gain some experience as well as some money for future flips.

If you’re unfamiliar, wholesaling real estate is a way to flip a property without ever actually taking possession of the property. 

By finding a good deal on a piece of real estate, putting the property under contract with a small down payment, and then finding another buyer most likely an investor that is willing to pay you a certain amount of money to take your place in the deal.

If you’re going to wholesale real estate though just be aware that you’re really going to have to hustle to try and find a good enough deal that you can flip the house to another investor and still make money on it.

The Live-In Flip

In general, when flipping a house, speed is the name of the game, as the faster you can flip the house the better the profits will usually be.

If you don’t have the necessary capital for a quick flip though, another option that would still allow you to flip a property is the live-in flip or the slow flip.  

Using the live-in flip strategy, you usually use traditional forms of financing such as a conventional or FHA loan to purchase and move into a run-down property that mainly needs cosmetic fixes and updates using the $10,000 or perhaps even less as a down payment on the loan.

Then over time fix up and update the home while living there to eventually sell the home for a profit once the repairs have been completed.  

Keep in mind though, I am referring to this strategy as a slow flip strategy because instead of thinking in terms of months to flip a house you need to be thinking in terms of years.

However, if you don’t have the money for a quick flip, doing a slower live-in flip with traditional financing can be a way to flip a house without a lot of money.

Also, if you live in the house you’re flipping as your primary residence for at least 2 of the last 5 years from when you purchased the home, you will not have to pay any capital gains tax on the profit you make up to $250,000 if filing individually or $500,000 if filing jointly.   

Best Ways to Provide Value in a Real Estate Flip Beyond Capital

But what if you don’t want to wholesale real estate or do a live-in flip and want to instead do a typical quick flip, how can you do this with little money? 

The best way to flip a house with only $10,000 as mentioned above is to find a way to provide value to someone who does have the money to flip a house. 

So let’s take a look at some of the best ways you can provide value in a real estate flip beyond money that might make an investor want to partner with you on a flip.

Sweat Equity

The most common and best way to provide value in a real estate flip with no money is to provide all or the majority of the labor for the flip.

This is a great way to provide value to a flip as the investor with the capital might not have the time available or want to provide much of the work or labor on the flip. 

So if an investor with capital can partner with someone that not only has the time but also the skills to rehab a house, this can be a huge value add in the real estate deal and can be worth a sizable portion of the profits once the house has been successfully flipped.  

Find the Deal

Oftentimes, especially in a hot real estate market, one of the most challenging aspects of house flipping is trying to find a good enough deal on a property that would allow the property to be flipped for a profit.  

So if you have a line on or know about a good deal on a piece of property, you can easily interject yourself into the deal and provide a ton of value by bringing a good deal on a property to a real estate investor with money to invest.  

Manage the Flip

Beyond the sweat equity and labor you might put into the flip another way to bring or add value to a real estate flip is to manage the flip as well as the job site.  

This is because there are many real estate investors out there that either don’t have the time or the desire to manage a house flip which can oftentimes be very time-intensive and require a lot of time on site.   

So if you can be the partner that will manage the flip as well as the job site and meet and deal with all the subcontractors, this can be a huge benefit you can bring to a real estate flip beyond just money.  

Can You Flip a House with No Money?

There is not a lot of difference in strategy between flipping a house with $10,000 and flipping a house with no money. 

As neither scenario is enough money to flip a house on your own and both will require you to either partner with someone or obtain a loan in order to have the capital needed for a house flip.  

However, if you have no money to put towards the flip whatsoever things can become even more challenging.

Because at this point you really have no skin in the game which can make whoever you partner with or get a loan from even more nervous.

So while it’s technically possible to flip a house with no money by partnering with a private partner or by obtaining a hard money loan, its important to be prepared for a lot of roadblocks and obstacles along the way as it will be very challenging to flip a house with no money.  

Protecting Yourself When Flipping Houses with No Money

When flipping real estate whether you have a lot of money or no money, it’s always important to make sure contracts are used and everything is in writing to protect yourself as well as your interests in the real estate deal.

While you might assume a handshake deal is alright between you and your partner. 

What you have to realize is that because you have little to no money in the property, you more than likely will not be on any official paperwork for the property either such as the sales contract or the deed for the property.

Meaning if something were to go wrong, which can and does happen, you would have very little to no recourse to protect yourself or your interests.  

So even if your real estate flipping partner is your best buddy that you have known for 20 years.  It’s always better to be safe than sorry and make sure everything is in writing.

To make sure everyone is on the same page and agrees to how each party is to be compensated, the profit split for the property, and how the real estate deal is to be structured.