Rehabbing in Atlanta

3 Replies

I am searching for an article reporting on the average gross profit a Real Estate Investor should expect to receive if he/she were to rehab a single family home in the metro Atlanta area. I would like to use this article as a reference. I found an article on the AJC stating that Real Estate Investors who rehabbed properties earned on average $50K gross profit in 2014 ( This seems rather high. I am hoping someone with great insight in the Atlanta market can lead me to the right article to reference or provide good insight on what should be expected. Thanks!

@Briana Johnson  I've not seen this article.  I'm not sure it exists.  Results vary wildly based upon experience, timing, and strategy.  

However, based upon my experience I think there's a scale of results and expectations by experienced investors.  Here's what I expect.  Time/complexity of the deal is as much a consideration as cash outlay.

Minor Cosmetic Flip - No layout changes, just paint, carpet, swap fixtures.  Total rehab cost 20 - $30k.  I expect a $20k margin and a very fast, easy project.

Moderate Cosmetic and Layout Modification Flip - Minor layout changes including addition of bath, laundry, foundation issue, mold issue, OR opening up Den/Kitchen.  $30 - $60k rehab cost.  I would expect $30k - $40k for this type of project.

Major Rehab -- Interior gut or moderate addition, pop top.  $120k rehab expense.  $80 - $100k profit.

New Build -- Either starting with dirt or leveraging existing foundation, new build.  $100k+ profit unless a subdivision.

@Abhi Golhar or @Todd Whiddon can weigh in and provide their perspective.  

@Briana Johnson -

I primarily play in the major rehab/new construction/subdivision space. The numbers @Rick Baggenstoss mentioned were right on target. 

For major rehabs, net profits can be $80k+,
new construction 100k+, and
subdivisions can be significantly more. 

As speculators, we understand there are many factors that contribute to increased profit expectations and the success of a project. Therefore, I would complete the due diligence that most do incorrectly (or don't do at all), including: 

1. Neighborhood & school analysis
2. Repair costs, and 
3. ARV

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