All Forum Posts by: Jonathan Yip

Hi everyone! I recently finished my first rehab for a flip and put it on the market! A few bumps along the way but overall happy with the process. The house looks GREAT.

It just crossed 30 days on the market so far. Had a few showings but pretty slow overall. I researched comps and calculated out an ARV, and my realtor came in very close on his analysis as well. We priced it to market right out of the gate, so it isn't overpriced.

There are a few issues - the neighborhood isn't great and the house is a lot nicer than its surroundings. Trash on the street, vagrants passing through from time to time, etc). The next door neighbors (it's a multi-family unit) are also very nosy and in close proximity.

The comp down the street sold at around what we are asking, but it took 90 days or so.

I calculated the cost of money, utilities, taxes, etc, plus the loss of potential earnings on not recouping the money, at around $4K a month. The house is currently listed at $217K. So in theory I should be willing to take $209K today instead of $217K in two months.

My questions is: should a price drop be the next step? Are there any other actions I can take that result in big "wins" for the amount invested?

Appreciate any input. Thanks!

Great questions to ask, thanks for posting!

@Sanjeev Advani As I mentioned, I have private money financing my current flip, and I'm working with my contractor and agent to put it up on the market by December. Meanwhile I'm trying to shoot out a bunch of new offers so I can have the next deal lined up beforehand (hence the search for hard money lenders).

I'm also in the LA area. I kind of did both 1 and 2 - doing flips out in Bakersfield. Am about halfway through the rehab process on my first flip property. I agree with Jo-Ann, it is definitely a lot of work (I'm doing it full time), especially since I have to drive out there a couple times a week. The good news is you have good steady income so you can be more flexible with what you choose.

Hi everyone,

I'm also pretty new to the Bakersfield market. Bought my first property to flip last month and am about halfway through the rehab process!

Like Eiji, I'm also curious about how you guys are finding financing. My current flip is being financed through private money, but for the next one (assuming I can land a deal before I sell the current one) I will probably have to find a hard money lender. Should I be looking for a local lender, or are there statewide and/or national lenders to go through? What's the best way to find one?

Cheers, and good luck to all!

Thank you all for the welcome and the advice. Out of the areas that have been mentioned (Bakersfield, Lancaster, Palmdale, Fresno, East/South LA, etc), does anyone have any input on the overall housing/job markets?

Once I've settled on an area to focus on, what would you recommend as the best way to find a flip-friendly agent and start checking out properties?

I'm working with a limited budget - just enough for a low-priced cash deal + remodel, which is why I mention the sweat equity. For now, I won't have anything left for new deals until I close out the first one. I'm willing to put in the time for my first deal for the experience, then eventually work up into bigger deals where I can outsource more and more of the work.

Thanks again for all your feedback!

Hello everyone, my name is Jonathan Yip. I'm a recent MBA grad in the Los Angeles area, coming from a background in business development, digital marketing, and brand strategy, looking to go into real estate investing full time. I've owned and managed a 4-unit property for a few years, and now I'd like to get started in fix and flip properties. I am extremely handy and do a lot of home improvement projects as a hobby - building furniture, installing fixtures/appliances, fixing things - so I'm willing to work with contractors as well as invest a lot of sweat equity into a property. I'm looking into areas like the San Fernando Valley, Lancaster, Palmdale, Bakersfield, and Fresno, since LA is a little out of my price range at the moment (not ready to get another mortgage yet... I want to stick with cash for my first flip, get my feet wet, and then expand into larger deals as I get the experience). I'm definitely open to any advice, suggestions, agent referrals, etc.

Hope to learn a lot from you all. Cheers!