All Forum Posts by: 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

Thanks so much all for the warm welcome!

@Ryan Landis - In short, Sacramento was a market that was chosen primarily due to proximity.  Within driving distance of the Bay Area and with decent rental returns, Sacramento was chosen as a starting point.  Now that I have more resource and experience, I sought out better investment markets and Houston came out to one that I really liked.

Hi All -

It's nice to e-meet you!

I've read around the forums and listened to numerous podcasts and figured that it's about time I provided an intro.

A little about myself:

• Based out of San Jose / San Francisco, CA
• Recent college graduate
• Spent the past 3 years working full-time in tech startup sales (yup - I was still attending school)
• Currently transitioning job positions from smaller companies to Indeed.com - also in sales
• Saved up money from my various jobs to purchase my first rental in Sacramento, CA using BRRR
• Currently at 4 total rentals in Sacramento.  In contract to purchase my first in Houston

Definitely looking forward to connecting with like minded folk - feel free to reach out if I could be of any help!!!

Cheers,

Andrew