My First flip... High $$ in my home town. Follow along
Well, After almost a year of looking, getting $ lined up, networking, reading BP and basically freaking out... My wife and I have taken the plunge, we sign tomorrow and close monday on a flip in my home town...
I live in NorCal.. very $$$ area where people pay stupid prices seemingly way out of line with reality. It has taken me looking at probably a dozen MLS and pocket listings to find one that would pencil. Basically everything on BP turned out to be true. Dont force it. Find the right house, with the right seller, at the right spot... and GO.
This house was listed in July for $850,000. Built in 1972 in good shape overall. 90's kitchen remodel, but otherwise original.
https://www.openlistings.com/p/517-cleveland-ct-davis-ca-95616 Lots of pics and data there..
I went and looked at it when they dropped it to $650k, a 200k drop in 45 days... I was thinking wow, this house is gonna be TRASHED.. bad foundation, mold, termites, SOMETHING that is causing people to walk away.
Turns out no... nothing wrong with it. Just a garbage realtor. No staging, no paint, nothing but a little new sod was done to the house. Still crap all over the yard, crap in the garage, crap in the driveway. I offered on it at $620 just to get in under contract. they countered 630, I countered 625.
2 weeks of inspections, and I knew that with holding costs...(likely have to wait until spring to sell it) and the rehab it would need, I couldnt pay $625 and be safe.
I am borrowing 100% and the rehab between my heloc and conventional financing on the house. I had my contractor write me up a $30k deferred maintenance bid, dripping P traps, the small amount of termites, all the usual dry rot for a 45 year old house etc.. and countered them down $50k to $575. thinking they would come back at me and I would have a decision to make. And to my shock... THEY TOOK IT.
I have a contractor I am working with I need to tighten up his bid a bit... we will be at about $70k for full baths and kitchen and flooring and paint interior exterior... new lighting, hardware.... and one structural change to un ink the living room.... I will update this thread as I go!