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Alex Babayev
  • Flipper/Rehabber
  • Atlanta, GA
133
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105
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Smyrna, GA Flip & Profit Analysis - New investors Read to Learn

Alex Babayev
  • Flipper/Rehabber
  • Atlanta, GA
Posted Jul 3 2018, 07:20

Summary – Key Points

  • Less is more – More bedrooms does not always relate to higher sales price
  • Negotiation – It does not matter what a property is listed for on MLS, make an offer based on what will make sense for you
  • Unexpected Expenses – Keep an extra budget always allocated for the unforeseeable

We bought this outdated & desperately in need of modernization 3BR 1BA SFR in Smyrna, GA on February 27th, 2018 off the MLS. I have done a couple of flips in this area and was very familiar with the neighborhood. It was listed for $170K on the MLS. After doing an initial walk through and coming up with a renovation budget and sales comps we decided to offer $105K (Yes an offer $65K LOWER!) a few days later the seller countered and we ended up buying the property for $110K. We paid for the property in cash and were able to close quickly. We had an ARV in mind for the property of $215K-$225K, with a renovation budget of $40K-$50K.

*ALERT ALERT* – DO NOT BE AFRAID TO MAKE OFFERS! YOU NEVER KNOW WHAT POSITION THE PERSON IS IN AND WHAT THEY MAY ACCEPT. DO NOT BE SHY, SCARED, EMBARRASED. JUST DO IT WITH LOGIC AND COMMON SENSE.

Demo started in the beginning a March and took around 75 days of renovation to completion (Longer than usual four our renovations but we had some contractor issues). We completely gutted the house and gave it a new functional modern interior layout. We converted the property from a 3BR 1BA into a 2BR and 2BA with a full master suite with walk in closet and stand up shower with double vanities. This is what I mean by the concept less is more, you have to know your market and your particular demographic; who will be your end buyer. This property we were targeting a couple, retiree, single business professional. We felt instead of having 3 small bedrooms we would add value and convert one of those small bedrooms into a master walk in closet with a master shower. We added a patio slider door and created a deck, I always like to do this because it is relatively inexpensive, however is a great selling feature. We had to do all new plumbing and electrical throughout the entire property as well.

*ALERT ALERT* – SOMETIMES LESS IS MORE, YOU HAVE TO ANTICIPATE WHO YOUR END BUYER WILL BE AND SEE IF PERHAPS LESS BEDROOMS CAN EQUATE TO A PROPERTY THAT WILL BE MORE IN DEMAND TO THAT BUYER.

This house gave us a couple twists and turns however we got through them. First of all when we opened up a lot of walls we noticed there was a lot of water damage and we had to replace a lot of rotten wood along with all new insulation on exterior walls and a lot more sheet rock then we anticipated. We also noticed throughout the renovation that water was getting into the basement and we had to re-pour cement along the back side of the house and slop the grade away from the house this alone was an extra $3K expense.

*ALERT ALERT* – ALWAYS KEEP EXTRA FUNDS IN RESERVE FOR UNEXPECTED EXPENSES. ALWAYS HAVE ENOUGH PROFIT PRICED IN TO YOUR DEALS SO THAT IF UNEXPECTED EXPENSES ARISE YOU WILL STILL BE ABLE TO MAKE A PROFIT.

We accepted an all cash offer of $212,500K after being on the market for about 7 days. The cash offer was the winner because we did not have to have an appraisal and it was quick close 15 days. We could have sold the property for $5K higher is we went with a financing offer. Net profit on this deal was $37K.

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.

Keywords * Smyrna, Atlanta, Marietta,*

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