Dear Dave,
I follow your advice and live on a budget, but it’s really hard to save up for a down payment on a house because property is so expensive on the West Coast. My family thinks I should buy a cheaper property back home, fix it up and flip it to get the extra money I need. How do you feel about this?
-- Alan
Dear Alan,
When you take on this kind of work, you need to oversee what’s happening every step of the way. You’re working out details, keeping an eye on the crew and it’s all on you to make sure everything’s being done right.
It’s not unusual for pros who flip houses to look at 100 or more properties to buy just one. It’s not an easy way to make money, and it’s definitely not something to consider doing from a distance.
All that being said, can you guess what my answer’s going to be? Fixing and flipping properties in the area where you live is hard enough work. Trying to do it from hundreds of miles away would be a nightmare. There’s no way I’d sign on for something like this.
Keep working on your budget, and start saving as much money as you can. You might even consider getting a part-time job for a little while to bring in some extra cash for your house fund. But waiting and saving up is a lot smarter than trying to fix and flip a house in another state.
— Dave
Dave Ramsey is a national best-selling author, personal finance expert and host of The Ramsey Show, heard by more than 20 million listeners each week. He has appeared on Good Morning America, CBS Mornings, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for the company, Ramsey Solutions.