Hello Atlanta / Decatur folks. So I am closing on the purchase of my first property tomorrow. After considering this property for weeks I still can't decide whether to A. flip the property straightaway B. rent the property out C. fix the property up and then rent it out. Before others say this, I realize that this decision depends a great deal on my particular circumstances and goals. I'd just like to hear what other experienced investors on this site would do with the same property in the same neighborhood and your reasons why. Here are some things to consider: - The address is 2854 McAfee Road, Decatur, GA, 30032 (http://www.zillow.com/homedetails/2854-Mcafee-Rd-D...) - I am purchasing the property for $48,000 - The property needs a new water heater, AC compressor, roof (in the near future), and work to the kitchen, bathroom, and deck - The property is located on a main street / a Marta bus route - FHA buyers would not be able to make offers until the middle of June - The property is already fairly rent-ready - The property is on a long lot that connects to the anterior street, which could be subdivided into two reasonably sized lots if I go through the process of rezoning it (jumping through beuracratic hoops and contending with the local community) - I have already negotiated down some of the contracting costs - I am paying cash - Taxes and insurance favor buying and holding - Flipping is a faster process, which would allow me to try both strategies (next property) sooner Again, I realize in many ways in comes down to my own circumstances, but if you would humor me I'd be interested in hearing what others here, particularly those familiar with this local market and area, would do.

Hey @Nick Brubaker Like @Rick Baggenstoss said, I have experience on McAfee and currently own a house on McAfee. This was my first investment purchase and Rick actually advised me on it, so I don't mind sharing. It's good you are paying cash! That part of McAfee a better rental than a flip because it's a busy road, on the bus line and the values aren't as high for a flip, especially at a 48K purchase price. A lot of buyers are turned off by busy roads and you generally have to lower your price to sell it, which reduces your profit. My house is on 2551 McAfee and also a dividable lot. It's good to have that as values increase, but I would not worry about that right now and just concentrate on doing the bare minimums to get it rent ready as fast as you possibly can. Dekalb housing authority might be a good fit here because I think they need more houses for their program participants. I have decided to use mine as a live work/ space for my REI business and have started setting it up to do that. Let me know I'd be happy to meet and look at your property. I also have a local, retired painter that loves to do local projects. He's a bit slow, but will do a good job for you.

Great information you are receiving @Nick Brubaker At the end of the day, where do the numbers make most sense. Seems like for that particular area, rentals extract more value for a property like yours. It is very hard to sell a 2/1 and you don't seem to have the large enough spread to flip it at 48K. At the end of the day, what is the end goal in mind. Do you MUST have the return on this investment right away or can you wait 1 year to extract the funds. Good luck, you seem to be on the right track and this thread definitely helped. Cheers, Damir

Hey @Nick Brubaker -- I know you don't want to hear it again, but it still just depends on your goals. Rental income won't count towards getting financing until you've got a year (maybe 2?) of experience -- so put in what the house needs to be safe, comfortable and clean, get the best tenant you can, and start building your landlording resume. You'll tie up your cash for a year or so, but the chances of losing money are slim. After a year, you'll have more options, and you can still flip then it if you want. If you want to try a flip now, you stand a greater chance of just breaking even or losing money. To make it attractive to a buyer you'll have to put in a lot more money, with no guarantee of profit. But you'd get flip experience. I don't think you're getting a good enough price on the house to make much money flipping to an investor -- houses all over Belvedere/GlenCo are going for $50K as rentals. Lots aren't worth much in the neighborhood, or you'd see folks scraping for new build like they are in Decatur. If you just want to get it over with, you could sell or even assign it to an investor/landlord asap (like a wholesaler), make a few thousand quickly, and start over.

@Philip Bashaw can share his experience there.

Nick, I am familiar with this area, house already looks rent ready already from the picks and it's a great rental area u can get 800$ for it, if it was 3/2 u could have got 950$. If the only thing u need to work on is hot water heater and compressor it shouldn't cost u more than 2500 for both of them. You can replace the roof slowly just don't spend on patching it up too those costs add up quickly. Hold it for year or two and add another bathroom to it and u can flip it if u need to. This part of the area is becoming active with flippers. Not far from you 3/1 sold for 124k but had nice finishes. Hope this helps, I would do the same if it was me. Kiran

@Nick Brubaker It looks like a great buy and hold property. I would run the numbers on what would need to be spent on the rehab, compare that to what kind of rent increase you would be able to get. If you are spending 5k and going to get 100 more per month or more then I would say Rehab. Also I have always found some minor rehabs have decreased our vacancies and we typically have better tenants in the rehabbed properties. After a short period once fully rented, look into a refinance and then move to your 2nd door. Good Luck!

Would you flip this property or rent it out?

Jerry W.Pro Member

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Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes

Would you flip this property or rent it out?

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