Just thought I'd drop a little summary of a duplex I just sold in Sacramento this month. I'll try to keep it brief and just hit the high (and low) points.

Purchased for $565,000 in April of 2019.

-Build in 1910. Historic building in historic neighborhood.

-Each unit was a little over 1700 sq feet.

-Unfinished basement

-Detached garage that was inaccessible for parking.

-Shared backyard

-Major fire damage

-Located in Boulevard Park

After the rehab...

Sold for $1,210,000.00 in January of 2021.

-Reconfigured it to a 3/3 per unit.

-Left the basements cleaned out but unfinished.

Set backs..

-We were moving along nicely till I hired a sub for drywall that did WAY more harm than good. Had to fire him and brought in another company. This was at the height of the Sacramento Shutdown and if anyone went inside the units the new drywall guys stopped work for a week. Plus they dropped there crews to 1-2 individuals at a time. This dragged out the drywall for close to 4 months!!!

-When I did get this to market in July of 2020, very little on the high end multi-unit was moving. (they are flying off the market now). So we did not get any offers when we listed the property. Listed at $1,299,000.00 then dropped to $1,249,000.00.

-I decided to rent and keep it. Rented both units very quickly for $3200 per side and my agent kept it listed on the commercial side. No showings without an offer.

Sold...

-We received two offers at the end of November on the same day. It was a good day.

What I would do different...

-I did a 1 year hard money loan on an extensive rehab. I had to pay 2 points to extend the loan. An 18 month loan would have been more appropriate.

-When my drywall subs started dropping the ball I needed to cut them loose and move on. Hoping they are going to improve and change their ways is a waste of time and money. If they are not meeting expectations they are gone. Also, try to keep the lions share of payout at the end of the job. Protects me and keeps them motivated.

-Always have a plan B (and C). Be ready to rent and hold a flip that isn't selling or cut that price to sell. If you can't stomach it, don't buy it.

FYI I'm working on a big rehab addition in Arden Park in Sacramento right now. Should be ready to list in early March. It's coming out really nice!

Take care,

Billy

Pre and post rehab photos: