All Forum Posts by: Billy V.

Hey @Randy Bayo,

I live right next to you in El Dorado Hills and have been flipping house in the Sacramento area for the past 10 years. Now it use to be that the oder you are smelling when you step inside your potential flip was the smell of money!!! 😉💰... Unfortunately, on this one, it’s probably just dog sh*t.

A major rehab on your first flip would probably run you $125-150k if you are lucky. Now add in closing, holding, and selling costs. Oh and this little thing called PROFIT!!!

You have to make your own decisions but for me this is a huge NO!

Having accurate information and numbers is the key to this game. Good luck. 👍🏼

Thanks Charles. I was sweating for a few weeks😉

@DJ Dawson

@DJ Dawson thanks. The fire defiantly took some planning but I increased my budget for the unknown. With regards to the fire, the only thing I would do different is go in and demo absolutely everything. I tried to save some existing walls and ceiling’s (including drywall). I ended up demoing it all out at the end anyways.
 

I live in EDH. If you don’t mind shooting me the address I’d like to check it out? 

For me this was not a cheap one. I put in around $350k for the rehab. 

This was the first one. Permits were easier than I anticipated. We went “like for like” in the basement and it was approved without issue. Just slow like usual in the city of Sacramento. 

Hey,

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:

@Sherwin Gonzales just sent you a PM. I’m interested in the 5+ units. 

Thanks. 

@Jeanine P. sound good. I’m ready to close. 7 days cash works for me. 

Talk to you soon. 

What’s up Sac,

Just wrapped up a Sacramento flip and am interested in teaming up on some deals. When I started out years ago we had so many deals and not enough funds. Now I have the funding and am looking for additional deals. 

This was a Eichler style house. Really fun to do. We stuck to the original floor plan and upgraded just about everything. 2 offers in less than 24 hours. Closed in 14 days. Purchased at the end of December and sold end of April. 

Looking for all kinds of deals. Flips, rentals, multi-family. 

I bring years of experience flipping (started in 2011 in Sac) new construction, additions, rehab team, agents (real estate and insurance) and funding. 1 rental in EDH. 

Thanks,

Billy

@Jason Cotner "seed money" simply means money used to get started. If it is enough to buy a flip outright and complete the rehab great. If it enough for you to have some skin in the game and use a HML that works too. For my first deal I used my cash (seed money) from the sale of our primary residence and a HML. After a few flips I was able to start buying using just my own money. Of course I started doing 2 flips at a time and then started entering into higher price points and have just started adding square footage to properties with the help of HML. HML are a great tool if used correctly.