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

75 Replies

We bought this outdated 3BR 2BA SFR in Woodstock, GA on Januaryry 27th 2017 off market through an agent who we networked with in 2016.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.

Updated over 3 years ago

Thanks so much for all your interest. Here is the full rehab video of this project (Before,During & After) https://www.youtube.com/watch?v=a2Z5NV29HVk&t=117s

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

@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?

@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 :)

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.

@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.

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 ?

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!

@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

@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.

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