Woodstock, GA Value Add Flip $60K+ Profit (Analysis)

Real Estate Deal Analysis & Advice
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Woodstock, GA Value Add Flip $60K+ Profit (Analysis)

Alex Babayev
Flipper/Rehabber · Atlanta, GA · Member since 2015 · 105 posts · 133 votes

We bought this outdated 3BR 2BA SFR in Woodstock, GA on Januaryry 27th 2017 off market through an agent who we networked with in 2016. We paid $105,000 Cash for the house.

Demo started on February 1st and took 47 days to completion. We added a bedroom and a full bathroom and laundry room to the basement. This value add made the property 4BR 3BR.

Our comps in the neighborhood were between $180K-$195K. By adding an extra bedroom and bathroom we decided to push the comps and list at $225K. We got multiple offers withing 24hrs of listing and accepted and offer of $230K. We were not sure if the house would appraise or not for so much above the available comps in the area but thankfully it did!

Here are some detailed numbers for you to see regarding the project. We had initially budgeted $45K for the rehab but actuals came in at around $50K. What put us over the budget was using higher end finishes to justify the high list price and also we did not expect to install new HVAC system (3.8K) which was requested by buyers.

Images of the project can be seen here (click here) > Rehab Final Images

Check out some before and after pics below. If you have any questions regarding the project let me know, will be glad to answer for you. Also leave a comment about your favorite aspects of the re-design or what you would have done differently.

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Julie Kern
Investor · Taylorsville, GA · Member since 2014 · 352 posts · 540 votes
9y

Nice job!  Beautiful work and great numbers!!

1Reply
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  • Julie Kern
    Investor · Taylorsville, GA · Member since 2014 · 352 posts · 540 votes
    9y

    Nice job!  Beautiful work and great numbers!!

    1Reply
  • Bob B.
    Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    Good Job

    0Reply
  • Brian Garrett
    Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    9y

    Nice work the rehab looks great. Nice value add, great profit and quick turnaround. Kudos!

    0Reply
  • Robert E BoginoPro Member
    Real Estate Agent · Alpharetta, GA · Member since 2017 · 151 posts · 76 votes
    9y

    Wow nice job! Looks great and in a good area.

    0Reply
  • Todd Heintz
    Huntley, IL · Member since 2017 · 15 posts · 0 votes
    9y

    @Alex Babayev

    Great write-up!  Thank you for sharing.

    0Reply
  • Amy Rodriguez
    Lender · Littleton, CO · Member since 2016 · 54 posts · 4 votes
    9y

    Beautiful job on the flip. Love the openness of the new design. You can be working in the kitchen and still feel like you are apart of the festivities in the Living Room.

    0Reply
  • Leo B.
    Investor · Hercules, CA · Member since 2015 · 208 posts · 47 votes
    9y

    @Alex Babayev  Looks great!  I had a couple questions on your finishes as I am doing a rehab now.  Did the kitchen cabinets come finished?  If not, what is the paint color?  Also, what is the color on the walls?

    1Reply
  • Sam McCoy
    Investor · Yakima, WA · Member since 2015 · 9 posts · 2 votes
    9y

    Fantastic!!

    0Reply
  • Alex Babayev
    OP
    Flipper/Rehabber · Atlanta, GA · Member since 2015 · 105 posts · 133 votes
    9y

    @Leo B. I bought the kitchen cabinets finished and assembled already. FYI my price for cabinets included 2 double bathroom vanities as well as the kitchen cabinets. I do not have the paint color as we bought a grey Behr paint from Home Depot but it was too dark so we added several gallans of Killz to brighten up the paint and it turned into this custom color you see. 

    @Amy Rodriguez Yes, it truly has that awesome feeling of family and unity :)

    0Reply
  • Leo B.
    Investor · Hercules, CA · Member since 2015 · 208 posts · 47 votes
    9y

    @Alex Babayev  Thanks! Can you PM me the link to where you purchased the cabinets?

    0Reply
  • Lori Schaffer
    New Milford, CT · Member since 2016 · 7 posts · 2 votes
    9y

    Where can you buy kitchen cabinets for $4000? And appliances for $800? We are in Fairfield County, Connecticut, one of the richest counties in the U.S., and I cannot even find cabs or appliances for that. I was quoted $5000 just to paint cabinets in a condo. Re-tinting is $10,000 and new ones are $20k.

    0Reply
  • Alex Babayev
    OP
    Flipper/Rehabber · Atlanta, GA · Member since 2015 · 105 posts · 133 votes
    9y

    @Lori Schaffer Appliances I bargain hunt get scratch and dent - refurbished etc. Below is the exact prices I paid. 

    FYI my price for cabinets included 2 double bathroom vanities as well as the kitchen cabinets. 

    $20K kitchen cabinets that's crazy!! What are you requesting custom built mahogany wood!! You have to bargain hunt and know companies that work with investors and sell at wholesale price. I can call 10 different kitchen cabinets companies and will get quotes from $3k-$20 the industry is very tricky.

    1Reply
  • Lori Schaffer
    New Milford, CT · Member since 2016 · 7 posts · 2 votes
    9y

    Hi Alex, Thanks so much for your assessment. We need a fridge also, so that's another $500 or so. I'll take your advice and call around for prices.

    0Reply
  • Paul Gabrail
    Investor · Richfield, OH · Member since 2017 · 11 posts · 4 votes
    9y

    how were the closing costs so low?  Realtor commission of 6% alone would be $13,800 and then with title fees and everything, it should be more than that . Still seems like a good deal but if that part isn't accurate, what else isnt?  

    The work looks great!

    0Reply
  • Hampton Logan
    Residential Real Estate Broker · Milton, GA. · Member since 2017 · 29 posts · 17 votes
    9y

    Alex - Nice job; looks like it is possible to make a "silk purse out of a sow's ear"; good return on your investment, too.  Looks like you took out a wall between the kitchen and den to open the interior up, good idea. Incidentally, what is the address of this property in Woodstock ?

    0Reply
  • Rohan Saxena
    New York City, NY · Member since 2016 · 3 posts · 0 votes
    9y

    Hi Alex,

    Great job and ROI! I'm beginning my research into real estate and a lot of things I've read have said to borrow money rather than pay cash. May I ask why you chose to pay for the whole house in full, rather than a down payment and leveraging the rest?

    Thanks!

    0Reply
  • Hampton Logan
    Residential Real Estate Broker · Milton, GA. · Member since 2017 · 29 posts · 17 votes
    9y

    Alex - Forgot to ask, but how did you finance the purchase and renovation costs - conventional,  private lender, or what - please advise. Thx. 

    0Reply
  • Alex Babayev
    OP
    Flipper/Rehabber · Atlanta, GA · Member since 2015 · 105 posts · 133 votes
    9y

    @Paul Gabrail I paid 3% to buyers agent and 2% to my agent - so total commission was 5% - Since we had several offers we did not pay any closing costs for the buyer. See actual HUD below

    3Reply
  • Paul Gabrail
    Investor · Richfield, OH · Member since 2017 · 11 posts · 4 votes
    9y

    so you negotiated that the ONLY thing you paid for was realtor commissions? buyer paid for all other costs? 

    0Reply
  • Casey Rutherford
    Real Estate Agent · Atlanta, GA · Member since 2017 · 3 posts · 0 votes
    9y

    @Alex Babayev Can you also PM me where you got these cabinets and granite?

    Thank you - awesome project!

    0Reply
  • Alex Babayev
    OP
    Flipper/Rehabber · Atlanta, GA · Member since 2015 · 105 posts · 133 votes
    9y

    @Hampton Logan

    https://www.zillow.com/homedetails/103-Chickasaw-Run-Woodstock-GA-30188/51112940_zpid/

    0Reply
  • Alex Babayev
    OP
    Flipper/Rehabber · Atlanta, GA · Member since 2015 · 105 posts · 133 votes
    9y

    @Hampton Logan @Rohan Saxena

    I paid for cash for everything the house purchase and renovation. The situation here was the seller came to my agents office and wanted to list the property for sale for $115K. My agent told me about this property before it hit the market. I told him to offer seller $105K cash and I will buy it from him no headaches no inspections etc. The seller wanted out of the property and agreed. 

    I have never financed flips because I feel my offers don't get accepted if I present an offer which requires financing. When I offer CASH and large earnest money with my offer I get a lot more offers accepted. 

    Sellers rather sell to a cash buyer for a bit less than deal with financing and wait around 30 days for closing and have to go through an appraisal & inspection etc.

    1Reply
  • Alex Babayev
    OP
    Flipper/Rehabber · Atlanta, GA · Member since 2015 · 105 posts · 133 votes
    9y

    @Paul Gabrail Below are the exact and only fees I paid in this transaction. 

    1Reply
  • Paul Gabrail
    Investor · Richfield, OH · Member since 2017 · 11 posts · 4 votes
    9y

    interesting.  that's dope. 

    1Reply
  • Rohan Saxena
    New York City, NY · Member since 2016 · 3 posts · 0 votes
    9y

    @Alex Babayev Thanks a bunch for your reply.  Always is great to know other perspectives and reasons!

    0Reply
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