11th St, Oakland Diary

13 Replies

We've got an interesting one here...bought for a steal of a price at 240K, ARV is 600K. But the area is interesting, we had a trash container there for one day, and someone filled it to the brim during the night. It's going to be interesting getting this one going!

More fun facts: previous owner is skimming electricity! And managed to hoard so much stuff that there's a complex and full-bodied stench that pervades the whole house.

WOW sc

We’re going to make bank on this house. We bought it for $160K, put in $100K, and we’re looking to sell for over $500K. This house will be a HUGE winner for us. I’ll get into some of the rehab details later on, but how did we get such a steal?

We timed this house PERFECTLY. Timing is everything they say, and it was especially true in our case. We put an offer in shortly before this house was set to be foreclosed on, and the obviously-motivated buyer was eager to take up our offer and get out before the house could be sold at auction.

Timing: we got her a cash for keys, and got her out of the house within a month. In Oakland this is SUPER important, because she could have really dragged out the issue. It was worth it to pay her $12K to be gone.

Timing: we got in, got out, did all the necessary work, made it pretty, all in about three weeks.

Money report:

$160K purchase

$12K cash for keys

$100K rehab

Rehab details:

We’ve got the pictures of the exterior in the first post, but one thing I forgot to take pictures of was the interior of this place. And boy, this was a doozy!

We bought this a little before it was due to be foreclosed on, and the people inside had been living like animals. There were containers of crap and piss everywhere, and the house was completely disgusting. It was a true dump. And now…check out the after pictures! It was ready on May 8th, so about three weeks since we were able to get access to the property.

Finished product:

More photos:

http://www.meetup.com/The-Foreclosure-investor-tour/photos/26116342/

Great job, @Juan Diaz .  That deal was a dream come true, and you did a  wonderful job on the rehab.

Two thumbs enthusiastically up!

160k for a 500k arv is a wonderful deal!  Congrats!

Adrian Chu, Adrian Chu & Associates | Horizon Real Estate | [email protected] | 2064075452 | WA Agent # 107768, WA Lender # MLO-920749

@Juan Diaz

Wow, I was looking on Redfin, the house went pending in 4 days.  Good job!

Questions, I saw the original loan on the house was only 70K from 1991, why didn't the owner refi or do a loan mod?  I would think the mortgage got paid down quit a bit already after 24+ year.

Originally posted by @David C. :

@Juan Diaz

Wow, I was looking on Redfin, the house went pending in 4 days.  Good job!

Questions, I saw the original loan on the house was only 70K from 1991, why didn't the owner refi or do a loan mod?  I would think the mortgage got paid down quit a bit already after 24+ year.

 Thanks David! As far as the financial state of the seller, they did not do a great job of managing their finances...there were a couple tax liens that we had to take care of when we purchased.  I don't really know exactly why the seller chose to go the route of selling it to us, but I'm glad they did.

That's great.  It sounds like there was not much convincing to do, sometime people just need to move on and you were at the right place at the right time.  

WOW!!  My other business is in West Oakland and we see a lot of plight there.  Great job at making the neighborhood more beautiful.  Someone who buys this will not likely be a hoarder and allow filth in the house.  Makes me rethink Oakland as a potential market...  just don't tell my husband.  shhhh!  

Medium logo smallMakenzie Kelly, Dignity Property Group LLC

Hi Juan I am a realtor in Oakland.  I also work with many investors for unlisted properties.

Well versed in the Alameda County area.

Lisa Spencer/Better Homes

Great Job. I work with a builder if you're interested in buying some lots and building and selling prior to the home is completed for a nice profit.

https://ajames.leadpages.net/what-is-your-home-work-early-bonus/

Audrey James RA, BETTER HOMES AND GARDEN REAL ESTATE RELIANCE PARTNERS | [email protected] | 510‑421‑3020 | http://www.OaklandRealEstateWithAudrey.com | CA Agent # 01502402

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you