Well, I didn’t get a TO-DO list posted up from yesterday but I still accomplished a bit yesterday and completed almost all of my items on the TO-DO list for Thursday. Yesterday I went and walked a property with the Realtor that I have networked with around here. It was pretty amazing — of course I thought I had taken a lot of pictures to share, but it seems as if the tablet made picture making sounds without actually taking pictures! Argh!
I’d say it was a 1.25acre property with really old buildings (50-60 years) on a septic tank, with a deep bank down to the creek. The property was red-tagged for the guest house not being on septic and the listing agent went on to say that the old “WOODEN” tank had rotted out and needed to be completely replaced, along with the clay pipes. If n you aren’t hearing the ringing of the register, let me put it this way: that’s $20-40 thousand dollars to get that done. Just to start. Then we need to put in leech lines too.
The house is so oddly configured… it was actually remodeled in the 60’s to be the family retreat for a large family, and the bedrooms are configured right at the front door, and the kitchen ran right into the living space without being an ‘open kitchen’ space. There was a sink in the living space…. maybe it was supposed to be a wet bar. So the house needs to be taken down to studs. Rebuilt, re-configured, electricity brought up to code, and gas piped in from the street. Did you hear that sound of the cash register? Yup ca-ching!
- Kitchen – $60,000
- Master Bedroom – $40,000
- Finished Basement – $45,000
- Deck – $10,000
- Windows – $20,000
- Bedroom – $20,000 (both)
Then outside the driveway needs to be re-done. Fencing is falling over. Outside sheds are out of code. The guest house should be converted into a mother-in-law suite with a kitchenette. Garage needs a good update.
So in my head at retail prices (assuming you didn’t have your own hourly team) to take care of this it would be $350,000- $500,000 in rehab costs. And when you add in our holding costs assuming financing… you are in too the property for a little over $1mil. It could get $1.25 maybe as much as $1.5mil. But a $1.25 for a quick sale. With a 6 – 12month process with dealing with the slow California permitting process. Who knows where the market will be then, what the interest rates will be and what the tech market around here will look like.
Personally I want to keep myself to short term flips where the market is not going to change in the other direction to quickly. You might see some slipping on 60-days but 365-days the market could about face and vanish.
Let’s take a look at the TO-DID list we have.
Yes! I spent a good portion of the day trying to configure my spreadsheet to quickly evaluate a cvs pull off of the MLS. When I compared it to the MLS listing it gave me a great lead. So that was successful.
I did not pull the CVS list for Sacramento, because I spent so much time working on the spreadsheet.
Again, I did not get this done, but I developed the systems.
- Define Number Spread a little more appropriately.
We are looking at getting in at smaller price points in Watsonville, Ca because there is high demand for the homes down there and the price points are a little lower.
- Set up Appt with Realtor for the 21st, and see if Soquel might be interested in walking it with me
Walked the property with the Realtor, but did not get a hold of Soquel to go out with me.
- Re-Schedule the Zavala Appraisal
And, re-scheduled, and then because certain people seem to be clueless about what is going on, we can’t pay the appraiser (who we thought we needed too) but now we have to pay the lender to come out. It’s against the law for us to pay the appraiser!
Indeed. It was fun, and can definitely be a weekly event.
- Read another 30-40 pages of the Business Plan Book
Yup. It’s a quick read so this was extremely easy.
- Get Back to the Wholesaler about the Apartments in Las Vegas
I did not, I have not heard back from Mr. Henderson to see if his clients were still interested in buying something of that size in Las Vegas.
I don’t have a TO-DO list for this weekend. I mean there’s a Dr. Who marathon going on, on BBC America gearing up to the Dr. Who 50th Anniversary Special on Saturday so I am going to enjoy the weekend.