All Forum Posts by: Khang Tran

In Sacramento, I have had a steady stream of 'interested' potential tenants who were serious enough to have paid the $30 background check. However, they all express that they won't be able to move for a couple of months since the local u-haul is closed and there is a temp stay at home order.

Hey, glad you are thinking of the deal. I am concerned because you did not include a list of comparable properties , market rents, property taxes, insurance rates. If you have done that research, you would have an idea of what the actual cash flows are and what the property is actually worth. If it is overpriced, you will know by looking at comparables. Sit down and do the number crunching. If the agent is telling you it is overpriced, talk to him and find out what he thinks is a reasonable and take his advice and make that lower offer. The agent will likely be an asset in telling the client that your offer is a good one. 

The After pics look gorgeous! Thanks for the detail on lessons learned, I will keep in mind not paying contractors ahead of time.

Congrats on the deal :D That is an amazing return for the amount you put down into it.

I was going to post but realized this thread was over 2 years old!

Make sure you look at the airbnb rules for sacramento here:

https://www.airbnb.com/help/article/1248/sacramento-ca

Rental is great in Sacramento though I find if you want to rent rooms then it may be a benefit for you to find a location near a college campus. Honestly anywhere near downtown will work well for you.

It was my own personal money. Though now that I own a couple of rentals and am working on a second flip, I have been able to come across private money from friends and family who are interested in working with me. Part of the learning curve right now for me is setting up an LLC and establishing a securities company so I can take investors who aren't friends and family that have shown interest.

 Thank you :)

My expenses did not include the closing costs or agent fees of selling the house. I did the work myself for the 45k included labor and materials and I paid property tax for 2 years at about 5k for a total of 50k in expenses. This property is in the Del Paso area near Arden. A lot of business are popping up around the Arden/Exposition area of Sacramento so the surrounding areas are seeing a price increase to reflect the demand. I did the work myself but will contract future work to speed up the process. I am working on a second property now and have contracted out. The labor is going to cost me about 30k but will take a month instead of a year for the same amount of work as this property listed here.

 I would have kept this property and refi-cashed out except for 2 reasons:

1. The neighbors were not the greatest for renting. Between next door pet lady yelling at all times of the day from 6 am to 8pm for her cats/dogs to go potty and neighbor across the street who has numerous police visits makes the house less desirable for me to keep. 

2. I needed cash now because I found quite a number of deals while working on this property. I couldn't wait 6 months to rent out the property, refinance and wait another month to get the cash to start flipping another home. I saw more deals than I had cash for and I was doing this part time so I never got investors, hard lending or partners figured out. I missed a house selling in Natomas for $200k in a $500k neighborhood and all it needed was 50k in updates and that loss lit fire under me to contract work out for faster turn around times.

Investment Info:

Single-family residence fix & flip investment in Sacramento.

Purchase price: $153,000
Cash invested: $50,000
Sale price: $290,000

House info:
3/2 1000sqft. 2/1 main house with a 1/1 detached unit. My first flip! House was in terrible condition upon purchase with these problems:
*Foundation needed to be updated/replaced
*Beetle damage
*No kitchen
*No flooring
*ADU with no bathroom, kitchen and uneven slab.
*Cracked concrete driveway and no roof.

Originally planned to BRRR this property and would have done it if the neighbors were not so terrible.

What made you interested in investing in this type of deal?

The learning experience. I wanted a house with all the major problems (roof, foundation, pest, concrete) to learn how not to be afraid of these.

How did you find this deal and how did you negotiate it?

Found it through the MLS and my real estate agent.

How did you finance this deal?

cash

How did you add value to the deal?

rehab the property

What was the outcome?

Got what I wanted out of the deal minus the bad neighbors.

Lessons learned? Challenges?

Learned a lot of the construction side of rehabing so not afraid. Multiple thefts and numerous police calls involving suspected drugs led me to believe this property would be a nightmare to manage so Id id not keep to rent.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Real Estate Agent: Nancy Wong in Sacramento is very knowledgeable