Just wanted to share my joy. Bought the house (3/2.5) for 85k. House needed some work, especially new windows throughout. Spent about 20k on the property and sold for 134k. I've bought homes before but they were mainly for buy and hold. This was my first actual flip. :) Can't wait to do more!
Congrats! That's a tidy profit to roll into another property. :D
Congratulations! Elk Grove is a good place to flip properties. Was your flip there or elsewhere in Sacramento county?
Vikram: The property is in South Sac, but within Elk Grove Unified.
Way to go!
How long did it take you to rehab and sell?
Was there any big surprises in your rehab?
Nice work on the flip. Would you mind sharing some info? how long did it take you to fix and sell? What was your source of funding for this? cash, hard money, seller finance? did you price it below market to move it quickly? really appreciate you sharing the experience with us.
The property closed in early March, but we had to wait to the actual work because of the windows. All the windows throughout and sliding door had to be replaced. It was boarded up when I bought it. And that took about three weeks for custom order and installation. Over all, the whole project took about a month to finish. What was done were:
1. New dual pane windows throughout
2. New paint outside (the bank painted the inside already)
3. New gutters
4. replace garage door
5. replace hvac
6. new cabinetry throughout whole house, including kitchen and granite countertops
7. The rest were small miscellaneous items
Project took a little longer to close because buyer did a FHA loan (about 2 months).
When I looked at the property, there were no access to the backyard so I submitted an offer without seeing the backyard or the exterior besides the front. Big mistake because once we were able to get back there, one of the siding had dry rot and the whole side had to be replaced. The existing patio was also in very bad shape that needed to come down (it was done illegally and improperly).
Funding for this property was mainly cash. My original plan was to refi and cash out with private money upon close of escrow; however, the properly had existing liens that took time to clear up and lender would not fund otherwise. By the time title was clean and clear, I was done with the rehabbing and it made no sense to refi at the point.
Congratulations! you got the bug now!!! It seems like once you understand that you can actually do this , it's hard to stop looking for new opportunities.
Nicely don prei916,
and thank you for sharing the success and lessons learned with us. Best of luck on your next project!
Congratulations always love to hear about peoples success stories. Each success makes the next success easier.
I came across your post about the 3bedroom 2.5 bathroom rehab and flip you did awhile back. I'm a new Sacramento investor. My business partner and I just bought our first renal 3b/1ba in the 95823 zip code. We got it for $8k, which I think is an ok deal for our first purchase. I think next time we will do it a little differently and hopefully get a better deal. It's a good start though!
Anyway, back to the reason I'm messaging you. I read your post and it looks like you did a great flip for your first rehab. I was wondering if you could share some information with me as the next place we buy, we would like to do a rehab/flip. It seems like the south sac areas: 95822, 98823 have a lot of REO's, and the comps in those areas all seem to be those. What zip code did you buy in? Have you purchased and started any new projects? How long did the project take? Any help you could give me regarding what zip code and neighborhood you recommend would be awesome. We are thinking about doing an all cash offer on our next property, we just need to find it. The Sacramento rehab market just scares me a bit, because it seems like I'm having a difficult time locating properties I can rehab and then mark back up to a profitable and less risky after rehab sales price.
Again, not to pry too much, but I'm really excited about getting my RE license, buying our first rehab, and networking with some local Sacramento investors. Thanks!
Good work. Always love hearing a successful flip!
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