New to Real Estate · San Francisco, CA · Member since 2020 · 44 posts · 25 votes
Anyone that lives in the Bay Area or have had past experience investing in SFRs in Fairfield, CA? I did a BRRRR analysis on a 3 bed 2 bath 1200 sqft property and I am curious to see your thoughts on the numbers I ran.
Originally the asking purchase price is $200,000 but it has been vacant and on the market for over 700 days according to Zillow. Property also needs major repairs so I started out the analysis with a $100,000 purchase price.
Bay Area, CA · Member since 2014 · 6 posts · 4 votes
6y
This property use to be a probate sale + over priced for the longest time. Recently it came back on the market with this new price, not sure how much repair work is needed but Im sure its substantial given the asking price. The second story was added to the building and not sure if thats an issue, but I think repair costs might be more than what you estimate. But IF you can get it at $100k (dont think you will but who knows if you dont ask) then there might be room to make good money because ARV would easily be $350K-$370K, even for that neighborhood. I thought about that property too but not knowing what the repair costs are have kept me away.
Fairfield, CA · Member since 2019 · 74 posts · 31 votes
6y
@Josh Rodriguez
If you can get a property in Fairfield for 100k there’s very little doubt in my mind that you can make good money on it, but it looks like your underwriting is pretty hopeful with 5% repairs and 10% pm. Those aren’t outlandish numbers, but they aren’t conservative by any means. The Cashflow will be tight but Fairfield is a good compression market as it’s between two big cities so that property looks like something you should definitely pursue on some level; If you can’t handle the potentially negative cashflow, then flipping is always an option, and if you can eat the mortgage for a while, Fairfield is a pretty stable market with Travis AFB so it could be a great hold. Depends where it is in town though so be careful.
Best of luck!!
DM me if you have questions or need help with anything else :)
Bay Area, CA · Member since 2014 · 6 posts · 4 votes
6y
This property use to be a probate sale + over priced for the longest time. Recently it came back on the market with this new price, not sure how much repair work is needed but Im sure its substantial given the asking price. The second story was added to the building and not sure if thats an issue, but I think repair costs might be more than what you estimate. But IF you can get it at $100k (dont think you will but who knows if you dont ask) then there might be room to make good money because ARV would easily be $350K-$370K, even for that neighborhood. I thought about that property too but not knowing what the repair costs are have kept me away.