All Forum Posts by: Randy Bayo

I bought a house back in November 2020 for $378,000 in the Sacramento area. 1300 sqft 4 bedrooms and 2 baths. I rent out each of the room for $775/mon and the master bedrm for 850/mon. Total rent income is $3,175/mon. Mortgage is $2,170/mon.

I am running into financial problems. I can’t afford my monthly debt and I am trying to figure out if selling the rental house is worth it.

It is currently valued at $468,000.

My monthly expenses are:

Mortgage (home): $1,180

Student loan: $450 (owe 65k)

Personal loan: $330 (owe 10k)

Car loan: $250 (owe 10k)

Car insurance: $150

Cell phone: $100

Groceries/gas: $500

Total expenses: $2,960

I have 2 credit cards that are maxed out:

Chase: $1,500

BofA: $6,000

Some back ground. I am a 34 year old married man. Make 60k/yr. Take home after taxes is $3,200/mon.

My wife is expecting our first baby this December. She’s a Spa Owner and makes about 60k/yr. Business break-even. Been open for 2.5yrs.

My thought is to sell the house and use the equity to pay off the personal and car loans. Total 20k. As well as to pay off both credit cards. Total 7.5k. And use the rest of the equity to buy another rental property. I honestly don’t know what I am doing which is why I am reaching out to this forum looking for advice.

Any help and/or insights would be tremendously appreciated.

@Billy V.

Thank you for the feedback and insights!

Update: I put in an offer of 135k. Apparently there was 15 other offers as well. Seller went with the highest bid of 15% over asking value. So looks like she sold it for 230k

The place is not livable and they’re only taking cash offers.

I’m surprised that it sold for so much. Not too sure how some can make a profit, if they’re trying to flip it.

I spoke to another agent about another house and he informed me that there were multiple offers, with the highest being about 100k over asking price. Cash offers only. The house was also going for 199k with light rehab (new paint, floors, appliances)

I’m confused to how anyone can find a good deal in the Sacramento market, if people are buying way over asking price with little room of profit margins.

Should I look into other markets? It seems like it’ll be difficult to find a fix and flip in my area

@Allan Smith

Okay, looks like I have to do some more due diligence on running my numbers.

I calculated my MAO as arv minus expected profit and repair/fixed costs.

Hi guys! New to the forum.

It looks like I found my first new flip located in Sacramento, CA. The house is a complete rehab. Total gut job. They're asking $199k. ARV is $303k. Ran comps, house could sell for $310k. Looking for repair estimate and offer price confirmation.

I estimated the total repair cost to be $60k. My offer price is up to $210k. It’s approximately 1200 sq ft. 3 bed, 1 bath single family with 1 car garage.

Brief explanation of the home’s conditions... The seller is unable to care for herself or her 6 dogs. It is unlivable as is. Without being disrespectful, the floors are caked to the point that the odor is unbearable. To correct this, it needs to be gutted: new floors, drywall and cabinetry throughout. The roof and HVAC need to be replaced. The pool needs to be filled or repaired. Without having had an inspection yet, the structure appears otherwise sound.

Since this is my first flip, I honestly don’t exactly know what I’m doing. So I’m looking for advice from veteran flippers. What would be your approximate rehab costs and do you agree it’s a good deal? Am I in the ballpark with my offer price?

@Antoine Martel Perfect! Good to know. I appreciate the insights

@DJ Dawson Okay, good to know. I was factoring 70-75%.

Hey guys,

First time posting on here. I am very new at real estate. I bought my first rental back in November, and now I am in the beginning stages of wholesaling real estate.

I am curious, after factoring in the MAO, ARV, after repair costs, etc., what is the average profit that a flipper usually strives for when flipping a deal from a wholesaler in the Sacramento area?

Any insights and information is much appreciated.

Thank you,

Randy