My First flip... High $$ in my home town. Follow along

My First flip... High $$ in my home town. Follow along

Davis, CA · Member since 2016 · 595 posts · 344 votes

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!

6Reply
219 views

Most Popular Reply

Real Estate Agent · Carmel, CA · Member since 2015 · 193 posts · 128 votes
8y
See this reply in the discussion

79 Replies

Jump to latestLatest
  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    Lots happening at the house.  Kitchen cabs are all in, countertops later this week, and interior paint next week.

    went and cleared out the front yard yesterday!

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y
  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y
    Originally posted by @Youdo Thirakul:

    When are you expected to be done? 

     I am targeting mid Jan  for the main work.  Then depending on weather and l;andscaping...

    My marketing plan was always march... This area is very seasonal for TOP $.  But as soon as it is done, my agent will start pre marketing seeing if some desperate sap will snap it up pre market

  • Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
    8y
    Originally posted by @Carson Wilcox:
    Originally posted by @Youdo Thirakul:

    When are you expected to be done? 

     I am targeting mid Jan  for the main work.  Then depending on weather and l;andscaping...

    My marketing plan was always march... This area is very seasonal for TOP $.  But as soon as it is done, my agent will start pre marketing seeing if some desperate sap will snap it up pre market

     Desperate sap, lol. 

    Best of luck, look forward to hearing about the updates.

  • Contractor / Flipper · Hayward, CA · Member since 2014 · 195 posts · 86 votes
    8y

    Are those Imported cabinets or semi/custom?  Looks great. 

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    @Nhi Nguyen they are from

    http://jandkcabinetry.com/  

    basically a cookie cutter cabinet... BUT they have a lot of the newer trendy styles and colors....  we took some time to figure out shapes and sizes... order and POOF.  kitchen arrives.

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    Tile went in on bathroom floors!

    Hall Bathroom which is a Door from hall/vanity/ door to shower and toilet

    and master

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    well it has been a very busy month!  The interior is mainly done.  fit and finish items like knobs and faucets goes in in the next couple weeks, appliances come in on the 8th!  Got a whole 4 piece stainless kitchen appliance set for $2800...

    Sourced a play structure from a friend who is moving to fill in a big empty spot in the backyard... was a skank to take apart and move... but its almost done!

    Landscaping!  ARGH!  I way underestimated the cost of this.  Total boner move to not get it dialed in a long time ago.  BUT, I havent had any surprises in the reno... so I figure I am about where I thought I would be.  Running into local expectations... I was planning to just plant some plants, clean it up, bark the hell out of it and be out...   But it is a BIG yard being a corner lot, so I am running into major choices trying to get the house positioned on the market with a yard that is done enough for curb appeal, but not overdone.  But either way I shouldnt have been surprised by it.  I assumed... and you know what they say!

  • Investor · Oceanside, CA · Member since 2017 · 26 posts · 8 votes
    8y

    Great work so far!  Following... excited to see the end result and numbers.

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    Met with my realty team on Wednesday.  They were in love with the house.  We have appliances coming in monday, and final pest work happening tuesday.  Light fixtures, switches knobs and plugs, plumbing fixtures and some touch up is about all thats left...

    Staging is on track to go in late this month, and right on the market....  We originally planned to go on the market in Spring, but with no inventory...  Check out the realtor.com of this whole side of town... 

    He says we would be stupid to wait.  every realtor I know is sweating for the house to be done... that they have buyers.  So, kind of a hustle now to get the landscaping in a bit sooner than we planned... but a good problem to have!

  • Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    Only 2 houses for sale, at $375k and $429k. Your house is going to be listed around $775-800k correct? That means zero competition, which is nice!

  • Corona, CA · Member since 2017 · 99 posts · 42 votes
    8y
    Keep us posted. Make it happen!
  • Corona, CA · Member since 2017 · 99 posts · 42 votes
    8y
    You didn't mention (at least in your initial post) how it comps out... most important IMO.
  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    @Cameron Novak   comps are hard in this price range, as not much has sold, and none of those were redone.  my budgeted amount of 775 is a very safe comp off of comperable houses in older condition that have sold in days...  I want to be HAPPILY surprised at closing.


    One nearby about the same size sold in end of Sep for 782 in well kept shape, but all original.  Formica kitchens and 60's appliances.  that is my best comp I guess.

    Yes NO competition.... I am really hoping for a Norcal braindead zombie bidding war....  but I am trying to stay in my chair.

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    @Brian Pulaski and those are halfplexes. 3/1 halfplex across the street from me sold FSBO for 491k... which is why my buy of a 4/2 on a culdesac for 575 pissed everyone off!! Ha! Problem is I cant replicate it ever again!

  • Investor · Birmingham, AL · Member since 2016 · 15 posts · 17 votes
    8y

    I've been watching your progress. Great job for your first flip! My only comment is that when the inventory is low where I am and I have a total renovation I will push the market. You can always come down and you are going to have it listed early, before Spring so you have plenty of time. I'm an appraiser also so I always do a lot of work researching before I buy so I know what I can sell it for. I always have a long list of every little thing I have done for the appraiser. No dollar amounts, but a list of all the updates. So they know they had better find totally renovated comps or make substantial adjustments for all my updates.  Also, if you get to the point you get multiple offers be sure to let the appraiser know that, too. If I know a home has had multiple offers that means more than one person thinks this house is worth it and I really am going to try and make it work! Good luck!

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y
    Bruce I am having thoughts about doing this. I will be asking my realtor to comp it out and price it at upper end of reality. But I don’t want to go too hard.
  • Investor · Birmingham, AL · Member since 2016 · 15 posts · 17 votes
    8y

    I understand. You still have to be realistic, but I just don't like leaving too much on the table. There are a lot of factors and time is a biggie. I just sold one that we had a back up contract that would have netted us about $6,000 more but the first was able to close in 4 weeks so we stuck with that. A quick sure thing has a lot of value to me.

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    yup!  I am licking my chops just a bit....

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    LOTS happening at the house.  Landscaping is off and running, Contractor is doing plumbing fixtures, switches, plugs, door knobs etc... all the little stuff.  Landscaping, we had a bit of a battle of the minds... Landscaper wanted to do it UP...   Realtor said it needs to be DONE but it doesnt need to be pimped out.  Just want to hit that curb appeal, make people feel that it is done, that they wont have to spend on it... but not to go TOO hard, as tastes change from person to person.....

    What did we learn this last few weeks.  

    1. cold and flu season is a beast, and can whack your schedule.

    2. Everything is more...!  Landscaping was about double what I wanted to spend.  Stupid of me to assume and wait.

    3. Lots of LITTLE stuff comes in at the end of a project.  Shower rods, door knobs, cabinet hardware.

    4. no substitute for walking the house.  It really spurs discussion, and introspection...

  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    8y

    Looks great the staging and photography really nailed it as well.

  • bakersfield, CA · Member since 2018 · 5 posts · 0 votes
    8y

    Ive been following your flip. Work looks good! 

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    well, the redfin post got removed, I guess mods think that is selling it...?  

    ANyway, google 517 cleveland ct 95616 Demasi and it will pop right up!

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    Before and after Entry way, looking into kitchen with sunken living room to the right.  We opted to just take the walls back a bit heading into the kitchen...vs a whole removal, and beams...  it really opened it up a lot for the $

    Dining room.  we did nothing in here but paint, floor, baseboard, and lighting.

    Back patio.  We painted the deck the body color of the house, replaced bad boards, and removed part of it that blocked the sideyard... It makes it MUCH cleaner looking

  • Davis, CA · Member since 2016 · 595 posts · 344 votes
    8y

    Kitchen!  We are very proud of this transformation!  The only real change was taking a foot or so OFF the end of that peninsula, it allowed better flow.  Shaker style cabinets that DW picked out....

    another view of the kitchen... this home has lots of great light, so we wanted nice light colors!

    and the front!  This house sits on a corner.. culdesac to the left as you look at it... but busier street on the right.  They were smart in that they put the driveway deep in the culdesac, and the entry on that side as well... but the landscaping and curb appeal was GONE.  We pulled everything out of the front and side front except the larger foundation plants, landscape fabriced it, dripped it, and planted some california natives...  Front door got painted and two nice pots with citrus in them sit on the stoop.  We knew the curb appeal was going to be huge, as this house is unique... so to get people to get past the wierd (for this area) modern flat roof design... it had to look clean and presentable!

    the family room off the kitchen. not much change here... updated the cans, flooring, and redid the fireplace.  fireplace is just MDF and trim from my GC, and tile over the existing hearth.

    My wife has gone nuts with the pictures... totally spamming our facebook... but we hope to get action on it fast!


Join the conversationCreate a free account to reply, vote on answers and follow this thread.