Intro & Calc Review - itemized rehab costs, purchase costs

[Jon Catterson]

Hello all,

I live in Sacramento, CA. My wife (then girlfriend) and I purchased a long-distance SFH in Columbus, OH, in 2021 and sold it in 2024. It went well. Sidenote: @Zeke Liston is a great realtor there, and Donny Thompson was a great property manager. Both provided numerous off-market leads. Donny had contractors he worked with for his landlord clients. 

Now, I want to fix-and-flip locally before perhaps doing long-distance BRRRRs, which I believe do not work well here in Sacramento. I have read The Book on Flipping Houses by J Scott and summarized it for myself, have listened to The House Flipping Framework by James Dainard, and am now reading it and summarizing it for myself. I have utilized J Scott's The Book on Estimating Rehab Costs to estimate renovations. Since the latest edition was published in 2019, I am using the upper end of the ranges due to inflation. I also have a good friend who knows everything there is to know about construction, who corrected some of my rehab estimation mistakes, though he is not a flipper and has some blind spots for what is needed for flips. 

I have a realtor and am searching the MLS. I've made three offers. They were all lower than the list, and the properties went to someone else for list. I think my rehab estimates are high, but I hesitate to go lower since I'm a beginner to this. I will use a general contractor for sure on this first flip, which of course adds to expenses.

My money comes from a self-directed IRA. I am using all cash, no financing. My plan is to flip one or two properties within the self-directed IRA, gain experience, and then utilize hard money or, ideally, private or soft money, outside the IRA. I don't want to do too many flips in the SDIRA to avoid UDFI tax.

Below is an analysis I did on a real property I visited. The rehab estimate is itemized to a certain extent. The one I did was more in the weeds, but what's in the reports gives a good idea of what I thought. 

I would REALLY APPRECIATE any feedback IN GENERAL and on the REPORT. Thank you!

View report

*This link comes directly from our calculators, based on information input by the member who posted.