Flipping Houses in Sacramento: A Beginner's Guide

Sacramento is one of the best markets in California for house flipping. We have a diverse stock of older homes in established neighborhoods like Tahoe Park, Hollywood Park, and Carmichael that are ripe for revitalization.

Step 1: The 70% Rule

The golden rule of flipping: Do not pay more than 70% of the After Repair Value (ARV) minus repairs.

• Example:
  • ARV: $500,000
  • Repairs: $50,000
  • Max Offer = ($500k x 0.70) - $50k = $300,000

Step 2: Finding the Deal

You won't find good flip deals on Zillow. You need to look for:

• Off-Market Properties: Direct mail, driving for dollars, or networking with wholesalers.
• Distressed Situations: Probate, tax liens, or tired landlords.

Step 3: Funding

Cash is king, but you don't need your own.

• Hard Money Lenders: High interest (10-12%) but fast funding.
• Private Money: Friends, family, or local investors looking for a return.

Step 4: The Renovation

Speed is profit. Every day you hold the property costs you money (holding costs).

• Focus on: Kitchens, bathrooms, flooring, and paint.
• Avoid: Structural changes unless absolutely necessary.

Step 5: The Exit

Price it right. In Sacramento, if a flip sits for more than 30 days, people assume something is wrong. Stage it beautifully and take professional photos.

Want to Partner?

Community Renaissance works with local investors. Whether you're looking for your first deal or need a partner to fund a project, let's connect. We believe in lifting up the community together.