Jumping in and excited to be in the market again

[Dana Furby]

I’m Dana and am excited to start doing some small scale flips this year. I was a flipper in 2001 and did really well until I fell in love with this big country property on a river up north. I was envious of a friends big gorgeous fixers in Arkansas, and I reacted by over-renovating, holding on too long, getting over-leveraged and then 2008 happened and…well enough said. It left me spooked about the risks and also kind of killed my confidence. But I said at the time that one day I’ll be in a position to take advantage of dropping prices, and I think this is the time. I think I’ll start in Sacramento since I know that market pretty well. Ready to soak up some good lessons from y’all and not repeat my past mistakes. 

[Meghan Carson]

Hey Dana, it’s awesome to hear that you’re getting back into flipping! It sounds like you've been through a lot, but the fact that you’re jumping back in with a solid, realistic mindset is huge. The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.

Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:

1. Budget Control: Over-renovating was one of the big mistakes you mentioned. To avoid that, set a firm, realistic budget from the beginning and make sure you stick to it. Look for properties where you can add value with smart, targeted renovations rather than going overboard.
2. Financing Strategy: Since you're aware of the leverage risks, keep your financing options flexible and conservative. Consider starting with a few lower-cost flips with a smaller loan-to-value ratio to reduce financial strain.
3. Market Research: Sacramento can be volatile, so I’d recommend keeping a pulse on local trends—particularly in the neighborhoods that have potential for growth but haven’t quite hit their peak yet. Areas with good rental demand or up-and-coming properties could give you more predictable returns.

Do you already have a type of property in mind—like single-family homes, or are you considering duplexes, condos, or other types of flips? Have you considered Turn Key?