All Forum Posts by: Brennen Cook
Brennen Cook has started 15 posts and replied 79 times.
Post: Diary: Single Family - Land Park - Sacramento, CA
- Elk Grove, CA
- Posts 82
- Votes 5
Originally posted by @Karen Margrave:
@Brennen Cook Congratulations! What improvements are you planning to make? If you get a floor plan drawn out, please be sure to post it.
The interior of the house has some interesting character, seems like the house must have originally been more hacienda or spanish style?
Older home build in 1938. One or two owners. Plan to pretty much gut the house almost. Should get a floorplan and will post.
Post: Diary: Single Family - Land Park - Sacramento, CA
- Elk Grove, CA
- Posts 82
- Votes 5
Originally posted by @Derek Daun:
2/1 => 3/2 is great business model in that area.
I agree with @Chris Vail, though that you have to be really careful on your comps in that area. Land Park north of 2nd avenue is a completely different neighborhood compared to south of 2nd avenue.
Thanks Derek for the insight. You are not the first I have heard say this.. I think the real zingerf here will be how much I have to spend on rehab.. I paid a,little more than I would have liked to.
Post: Diary: Single Family - Land Park - Sacramento, CA
- Elk Grove, CA
- Posts 82
- Votes 5
Originally posted by @Chris Vail:
@Brennen Cook I am trying to figure out what you are going to do to the house that is going to push the value up to 480,000. Two houses down at 1325 1st ave sold on 2/20/2015 for 410k it was a nicely (completely) rehabbed 3 bed 2 bath granted it was only 1224 sq ft versus your 3 bed 1.5 bath that is 1378 sq ft however both lots are 5,227 sq ft. I am just struggling with how you are planing to add an additional 70,000 in value over the house that is the perfect comp for the area of what should be able to expect. Just playing devils advocate here as I can't wrap my head around what you could possibly do to add 70,000 in value.
Chris,
I appreciate the insite and devils advocate. If you take 1325 1st at 410k with 1224 square feet that's a,price per square foot if $335 dollars. 1378 x $335 is roughly $462k. That is how I usually comp it out. So in reality I'm only adding 20k in value and from what I have seen it shouldn't be To hard.
Post: Diary: Single Family - Land Park - Sacramento, CA
- Elk Grove, CA
- Posts 82
- Votes 5
1317 1st Avenue Sacramento, CA 95818
Hello BP,
Here with a deal diary this time!
This single family home is located at the above address. It is currently a 3 bedroom 1 and a half bath house with 1378 square feet. Literally just closed on this house not even a day ago now.
This deal should be very interesting. Land Park is a HIGHLY desirable neighborhood near downtown Sac. Although I will admit I believe we are pushing the boundaries on this one I am very confident in the end result. Here is my basic evaluation. I try my best to be as conservative as I can that way to leave myself the most upset. Prepare for the worst....
ARV: $480,000+ ( Some comps dictate an even high $/SquareFoot )
Purchase Price: $320,000 ( Cash )
Rehab: $80,000 ( Interior/ Exterior )
Real Estate Commission: $23,000
Closing Costs, Taxes, Small Misc: $12,000
Conservative Profit: $45,000
Cash Out of Pocket: $400,000
Cash on Cash Return: 11.25%
Acquisition to Resale Time: 4 Months
Annualized Return: 33.75%
1317 1st Avenue Before Pictures
We will be converting this to a 3/2
My phone died while taking photos. More to be uploaded. That is most of the house. The missing pictures are of the back yard, screened patio area with laundry, detached garage. Pictures to follow.
When I comped this out it seems as the further you get away from 1317, the higher price per square foot gets. There is also a rehabbed property at 1325 1st Avenue that sold for $335 a square foot. It appears as if it was a minimal rehab and I know some of the construction cost had to go to unanticipated structural problems. Looked at property and spoke with neighbors
I think that an ARV of $480k or $348/ Square foot is being conservative for a well done, rehabbed and fresh product. There are some houses in the area that have sold for $400+ a square foot. I am not saying that is likely to happen here, but I could see a nice house in this area selling for $370 a square foot, easily. ( That is me with my fingers crossed and hoping)
I feel comfortable with this deal and the potential money to be made. I think on the conservative side ( which is what I try to plan for) there is decent profit to be made. I think property has some serious upside potential though! I would love to rehab this house very nice and it sell for $520k! =)
I would love to hear what everyone thinks. I plan to update this each week with progress pictures once work begins. Would love to hear opinions, suggestions, and ideas.
Do not be afraid to bust my bubble!
I am posting this to learn myself and for everyone to potentially learn along the way. Please post any comments, suggestions, design ideas, anything! Know an architect? POST IT! Got an idea? POST IT!
Look forwarded to flipping this one with this diary..
Talk to you all soon!
Post: Let's Play a Game... What's the ARV?
- Elk Grove, CA
- Posts 82
- Votes 5
Originally posted by @Craig E.:
Land Park is tricky. Just had a 2/1 8 blocks away appraise for 390k. Can you see Target from the backyard?
I don't recall a target. Although I'm not super familiar with Land Park area.
I see alot a 3/2 rehabbed going for $360-399 a square foot...
Post: Let's Play a Game... What's the ARV?
- Elk Grove, CA
- Posts 82
- Votes 5
So.. that redfin link gives a list of sold proper ties that range from sale price of $184 square foot to $401 a square foot.
And more specific for a rehabbed property in this area? More specifically a price per square foot if anyone venture that far.
I know what I think just curious as how I pair up with you gurus. =)
Post: Let's Play a Game... What's the ARV?
- Elk Grove, CA
- Posts 82
- Votes 5
Originally posted by @Chris Vail:
I would say this is a good judge give or take 10k
https://www.redfin.com/city/16409/CA/Sacramento/filter#!sold_within_days=90&status=131&v=8&sst=&lat=38.56090819716683&long=-121.49552035287638&zoomLevel=17
Post: Let's Play a Game... What's the ARV?
- Elk Grove, CA
- Posts 82
- Votes 5
Hey BP,
I am interested on everyone's opinion.
What does everyone think the ARV for the property at 1317 1st Avenue Sacramento, CA 95818?
I would love any and all input! Thanks!
Post: Let's meet while I tour this summer (Smash Mouth)
- Elk Grove, CA
- Posts 82
- Votes 5
@Sean Hurwitz
Hey Sean!
I find many similarities in the deals and transactions we both are looking for. I am in Sacramento, but would also enjoy meeting up and connecting. INVESTING is what I am into and want to continually learn about. Can never know it all!
Would love to meet up sometime you in Redding or near Sac. Plan on any gatherings while your in Redding with anyone else intersted? If not I would be interested. Feel free to email.
Thanks,
Post: First Flip SOLD! Here is the deal A-Z.. I use that term loosely
- Elk Grove, CA
- Posts 82
- Votes 5
Originally posted by @Kathy McBride:
Nice job Brennen. Best type of learning is from trial and error and you still made a decent profit! I'll have to do a drive by and check it out since I just listed a property on Heights as well.
Would be glad to let you know of any deals I come across. Lets talk soon.
I couldn't agree more. Trial and error. And if you can error and still come out ahead... I read someone say the first is always the worst. I can only hope that's true in my case.
Would be happy to connect. Email anytime.