Updated over 8 years ago on .
DIAMOND IN THE ROUGH!!
Hello!
I am seeking out a partnership for a potential fix and flip I submitted an offer on. It is a 3 bed 2 baths 1794sq ft single story home in a small town just outside of Placerville, Ca. It is approx. 10-15 minutes from a major high and nestled back in a small sub division. The lot is 1.2 acres and all usable. It is a Fannie Mae foreclosure. Homes are going for approx. $325k after being on the market for a month. They are asking 249K which is at market for a decent outdated home in the market I am starting the bid at 100k with a max of 123k. Below are all my numbers and time frame. They are all conservative.
- My experience: 1 SFR home that has an NOI of $200/month. Used to work as a general contractors assistant and headed up the landscaping design and implementation and carpentry on projects. However, we were a "yes" company and would do almost everything from roofing, painting, drywall, basic plumbing, electrical, and heavy equipment operations. I currently work as a Paramedic in the Bay Area of California but I was born and raised in the area the property was located and still have family in the area.
Time: 3 months from acquire to sell is the goal, in order to meet this I plan on hiring a contractor(s) or a construction company that has done rehabs int he past and will be joining them every chance I get in order to help keep us on track for the 3 months. I plan on handling the landscaping myself in order to save money. I also plan on stepping in places like demo and clearing out the property in order to save money. I plan on clearing the house first then outside 2nd in order to allow the contractors to work sooner. I plan on trying to recycle metals in order to capture the possible income from them to place towards the budget.
Max offer: 127k
Profit: 50,000
Main issues:
- All of the previous owner's property was left on on site so there is a good amount of clean up needed that I will be doing in order to conserve the budget.
- Landscaping is in dire need
- mold and water damage to walls in the laundry room.
- carpet needs replacing in bedrooms and removed from rest of house and replaced with engineered wood, tile floor in the kitchen may be salvageable but it is in the budget to replace.
- bathrooms need remodeled and kitchen cabinets and counter need replacing (may be able to use once access is gained)
- Lay out of the house is nice except for having 2 sliding glass doors on either side. I would recommend removing and replacing with a front door on 1 of them.
- Decks are in good shape and just need cleaning with rails placed.
- the overhangs I recommend replacing with pergolas.
- the roof appears to be in good shape but may need some minor maintenance
- gutters need replacing
- siding needs some patching in areas
- house needs to be painted inside and out. with drywall needing prep work and some wallpaper removal.
-the foundation has no notable issues.
- electrical is 220 and updated with only light fixtures replaced and outlet covers and switch covers needing replaced.
- Below is a link to the overall report as well as a detailed analysis of my estimations. They are on the higher end to be conservative and there is a 49,000 budget cushion.
https://www.biggerpockets.com/calculators/shared/748290/836e784b-9f97-4e74-93dd-29ec9a718173