All Forum Posts by: Hayden H.

@Account Closed Thank you! It is called Great Oregon Water Oak RE022301 

https://www.republicfloor.com/great-oregon-oak-reor2301

Just the MLS, I need a better marketing funnel.. things are SO competitive now.

Hi All,

My partner and I completed my first fix and flip in Berkeley CA. He is a contractor/investor who has done a few flips and I'm just a guy who is interested in real estate. I studied the market for more than a year and all my offers were rejected before finally getting getting this fixer. As you can guess, the Bay Area is crazy expensive and our flip did not come cheap. We transformed a two bedroom one bathroom house into a three bedroom two bathroom house with an additional bathroom in the garage and staged the garage as living space. We moved the kitchen to the dining room, opened up the wall and created a master suite from where the old kitchen stood. We did not expand the envelope of the building and only worked with what was originally there.

Since my partner was also my contractor, I paid him half the renovation cost and he did the work. I think I overpaid a bit on construction from what I've seen other people pay for a gut rehab (damn Bay Area pricing). The flip took long, too long as this was my first time submitting permits. The permitting process took us four months and then my partner had to finish his other flip before starting on ours. The total time took about a year from purchase. If I had to change a few things, I would get a few more bids to make sure pricing is okay and make sure we are on schedule. Also, I made him do a few last minute changes because we didn't talk through all the details. I still don't feel I know construction at all aside from a few simple things. The first one is luck, if the second one goes well, I'll call it skill.

$750,000 - Purchase Price

$200,000 - Total Cost (Renovation Costs)

$100,000 - Commission/Taxes/Fees/Escrow/Holding Costs

$1,275,000 - Sale Price

$225,000 - Profit

Hi All,

My partner and I completed my first fix and flip in Berkeley CA. He is a contractor/investor who has done a few flips and I'm just a guy who is interested in real estate. I studied the market for more than a year and all my offers were rejected before finally getting getting this fixer. As you can guess, the Bay Area is crazy expensive and our flip did not come cheap. We transformed a two bedroom one bathroom house into a three bedroom two bathroom house with an additional bathroom in the garage and staged the garage as living space. We moved the kitchen to the dining room, opened up the wall and created a master suite from where the old kitchen stood. We did not expand the envelope of the building and only worked with what was originally there. 

Since my partner was also my contractor, I paid him half the renovation cost and he did the work. I think I overpaid a bit on construction from what I've seen other people pay for a gut rehab (damn Bay Area pricing). The flip took long, too long as this was my first time submitting permits. The permitting process took us four months and then my partner had to finish his other flip before starting on ours. The total time took about a year from purchase. If I had to change a few things, I would get a few more bids to make sure pricing is okay and make sure we are on schedule. Also, I made him do a few last minute changes because we didn't talk through all the details. I still don't feel I know construction at all aside from a few simple things. The first one is luck, if the second one goes well, I'll call it skill.

$750,000 - Purchase Price

$200,000 - Total Cost (Renovation Costs)

$100,000 - Commission/Taxes/Fees/Escrow/Holding Costs

$1,275,000 - Sale Price

$225,000 - Profit

I think it depends on what area you are from but in Berkeley, single family homes are worth more than a duplex due to rent control, renter rights, etc.

You should compare the value of both the duplex and the single family home. Also, what is your goal with the property? To live in? To rent out? To flip?

I'd be interested in learning about Sacramento. I live in Emeryville but my parents live in Milpitas so could go down there if its a weekend. 

i feel dumb, paid 200K for a gut rehab in Berkeley for 1,200 sq ft with medium finishes..

Thanks and will do. I'll post it after it officially closes since the realtor/buyer might be on BiggerPockets hahah.

Hi Guys, checking back in. Just sold the flip for 200K+ profit. Pretty crazy for my first one, will do a longer/detailed post in the Rehabbing and Flipping forum. Stay tuned.

Hi Kyle,

Oleg nailed it. I'm doing my first flip now and this is how I found capital. 

1. Told everyone I was interested in real estate, went to 200+ open houses, meet ups, met dozens of realtors, read 3 flipping books, went into home depot and other stores just to look at prices, took down contractor names when i saw them driving and even sent out mailers.

2. Put in offers knowing I didn't have the capital. Knew my numbers for the after repair value so if the offer were accepted, I would have a good deal and could pitch it or just back out.

3. When my offer was countered, I started pitching family and friends and got my real estate agent to connect me to a contractor/investor who was interested and who I've talked to before.

4. A friend and a contractor/investor decided to go in with me and here we are. It took 1 year and 4 months from the time I was interested until my first fixer upper purchase.

I'm not sure how it will turn out but at least its happening and a learning experience if nothing else.