Fix-n-Flip Project in East Sacramento

[Richard Goore]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $520,000
Cash invested: $520,000

Great location in East Sacramento - 2 bedroom/1bath, 1373 sq ft. This was an off-market purchase from a wholesaler as a fix-n-flip.

What made you interested in investing in this type of deal?

My investment partner and I wanted to do another flip in Sacramento.

How did you find this deal and how did you negotiate it?

I am on a bunch of wholesaler lists. I got a call from one of them about the property. Went and looked at it same day with my investment partner. Ran the numbers on what we thought it would cost to completely remodel the entire home. Walked the wholesaler through our numbers and gave them a price we would be willing to pay. They accepted!

How did you finance this deal?

We used cash on hand and pulled additional funds from insurance policies we can tap into.

How did you add value to the deal?

We will be completely remodeling the home - kitchen, bathroom, flooring throughout, new fixtures, paint inside/out, drywall, new dual pane windows, and adding a bedroom to make the home a 3/1 instead of a 2/1. The home is 1373 sq ft which is large for a 2/1 in this area. The living room was an enormous so we added the 3rd bedroom in a corner of that space.

What was the outcome?

Estimated completion of the project is end of May 2023. It will then go on the market for sale.

Lessons learned? Challenges?

Good planning and conservative estimates are very important. We appear to be right on budget or slightly over so far. In the end, if we are over budget, it should only be by about $5K.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not for the purchase. The listing agent will be me!