All Forum Posts by: James Peterson

Any Silicon Valley Developers looking for a high-end flip?  This home is smack in the middle of high demand Cupertino Schools, VERY close to the new Apple campus and has a ton of potential.

Purchase: $1.8M- $1.9M 

Cost for High END Rehab: $250k - $350k 

ARV: $2.6M - $3.0M

This could be a very profitable project if done right.  This property is not yet in contract yet is a listing that will hit the market mid-September but the seller is willing to sell pre-market.  

Please IM me if you are interested in learning more about the property.

I have been struggling to find deals that really make sense once the cost of financing, construction, holding and sales are all calculated into the mix.

Typically I'm trying to purchase single family homes at the 70% ARV - cost of repairs and I feel like I end up being so low someone always comes in higher and I watch them rehab and sell.

My latest property in negotiations has potential but a huge chunk of the profits will go to the cost of $$ with the hard lenders offering 10% interest and 3 points.

Would you walk away or go after a deal with these numbers?

Purchase Price: $320,000
Rehab: $60,000
ARV: $440,000

Profit: $60,000??

My calculations say no and this is why...

With a hold time of 4 months:

Cost of money is: $15,200 ($7200 points, $8000 interest)
Cost of Holding( Taxes/Utilities/Insurance etc): $3200
Cost of Sale (6%RE fees, title, escrow etc): $26,400

So, if all goes right I'll make $15,200?  Seems like a lot of work for so little, not to mention if costs exceed the $60k or sale price is $10k less I'm not making anything.

If I had the cash I'd probably pull the trigger... but I don't.  Instead I'll try to cut the purchase to $305k or bail out.

What would you do?

@Ryan K. - Welcome to BP, I'm newer to the Sacramento area, as I just moved to EDH in April.  Let's get together sometime, I'll be in West Sac A LOT!

-James

@Aaron Bassett I have been looking for the same thing with no response.  I guess this isn't a popular subject?  Have you dug up any interesting info on corporate housing? 

Thanks,

James

Vladimir, check out my Dixon wholesale offer, I would also JV on this one...

Dixon Wholesale

PM me and I can send you a breakdown

490 McKenzie Drive, Dixon CA

• Purchase Price: $292,000
• Estimated ARV: $380,000 (see comps
• Estimated Repairs: $25,000
• Profit potential: $45,000

Buy and Hold Value: Estimated at $2000/month

Description: This Dixon home is in an established neighborhood close to downtown, parks and I-80 freeway. It has 4 Bedrooms, 2.5 Baths , 1840 sf. with in-ground pool and waterfall. The house was built in 1978, has a generous size lot with RV Parking on the side and 2 car garage.

Please email me if interested @

[email protected]

Welcome @Jason J.!

There are some great networking opps in the Area.  Definitely check out the meetup @David Oldenburg started in Roseville.  Next meeting is Sept. 1st 

I'm close by in EDH.  

BP is a great place to learn, bounce ideas and get great advice.  

Happy hunting! 

@Steven Garcia Hey Steven, have you found a multifamily property yet? I am curious where you are looking and what your experience has been.
Thanks!

@Taylor Comer Did you ever find a duplex?  Would love to hear your story if you did!