Some help & suggestions for an duplex flip in Sacramento

[Andrew Luong]

Hey all!

As you may know, I'mprimarily a buy-and-hold investor with 4 SFRs properties in Sacramento, CA and in contract to purchase my first in Houston, TX.

I've always been interested in flipping but haven't had the right opportunity come across until a 6/2, 3/1/unit duplex I was recently able to get in contract 

Numbers

• Purchase Price - $206,500
• Rehab - ~$5,000
  • Minor cosmetic repairs
  • Probably overshooting this one, one unit is currently occupied by a tenant of 20+ years and the vacant unit is rent ready.
• Holding costs - $2,600 ($8,000 - $5,400 current rent)
• Closing costs - $15,000
• ARV - $250,000 - $270,000
• Profit - $20,900 - $40,900

Strategy

• Because home is rent ready and one unit is already occupied, as I close on this, I'll immediately list it for rent and for sale (I'm listing my own property)
  • If I'm able to get a good, clean purchase price now I'll sell it as is
  • If not, I'll place a tenant (market rent is $1,000 - $1,100 based on my experience with my other rentals in this area)
• I'll then list it for sale again as a fully occupied duplex.
  • If I'm able to then get a solid price, I'll sell it
• Worst case scenario, I'll refinance the private money and add this to my current portfolio

Questions

• Any initial thoughts on this strategy?
• Biggest dilemma I'm facing is that I'm short roughly ~$30,000 to close.  My numbers above are assuming I somehow come up with the $30k.  I'd really love some suggestions on how I could come up with this.

Thanks for your thoughts and looking forward to hearing back from y'all!

Cheers,

Andrew