I just purchased a property on Oldknow dr, Atlanta 30318 and there is a lot of activity in the area. It is still up an coming but properties are moving fast. I see the same in the other 2 zip codes. Have any of you done successful flips in these areas? Any advice or pointers? I would like to do more flips and buy some rentals in the area, but want to be cautious as it is a risky area.
Also, do any of you have rentals in the area? If so, is it hard to find good renters given the fact that it is still a little rough in areas?
Any opinions of forecast of this area? The distressed properties are still everywhere and are still cheap, but the rehabbed ones are going up in prices it seems.
Thank you all in advance for your thoughts/advice.
@Tiffany Allen I don't know anything about flipping. I have rentals in 30314 and 30310. Also 30315. I think the area surrounding Westside Reservoir Park is interesting for longer-term investments, though I don't have any. If you buy rentals in this area, you won't be able to follow the normal Bigger Pockets advice on tenant screening. You can find good tenants but you'll need to make trade-offs between income, credit, rental history, etc.
Whether to take Section 8 is a whole other topic.
Good luck with your deal.
I hold and have flipped in the area. I hold in 30310 just because it's closer and more familiar to me. However, ..14 and ..18 are getting traction and still cash flow pretty well unlike most of intown properties at this point.
This goes for all areas ... study a successful flip in the neighborhoods you're eying and do what they did. Sounds simple but too many people stray from this path.
I will say it's risky to flip lower end houses which need a lot of work ($40k+). Budgets can easily go over when you're dealing with old houses with poor maintenance history. Since your ARV is low, you don't have a lot of wiggle room.
A ~$200k ARV and on a 1970 and newer home OTP would work better.
I rehabbed 2 houses in 30318, also Collier Heights, back in 2013 and held them as rentals until selling one in August 2016 and one last August. They cash flowed well over the years and each one sold very fast. Both were sold to first time home buyers. When early contracts dropped out we got new full priced offers within 24 hours. Based on that success, and the lower ARV, which I like because if for some reason they didn't sell they'd be fine as rentals, I'm closing on a new one next week that will be a straight flip deal. It's a major renovation (hoarder/mold/storm damage).
Some rehabbers have gone the open plan/granite/stainless model and sold in the $170-$200 range. I'm planning on being a little more conservative with the rehab and sticking in the $150 range. Also, you probably know this, but Collier Heights is a historic district and they are VERY strict on what improvements you can make to the exterior. Changing out a window on the side of the house on one of my rehabs delayed me 60 days waiting for approval.
I'd be glad to discuss further if you'd like. You can reach out via email for phone call. Can also give you my experiences (good and bad) with tenant screening.
@Mark Graffagnino Thank you for your thoughts/advice here! I will reach out.
I agree completely with @Rick Baggenstoss , at this point it's almost impossible to find a good deal in 30310. But 30318 and 30314 are coming up (30318 is a huge zip code so obviously some it has been popular for years) but the collier heights area and anything along mlk has gotten better as well as the north part of 30318 below riverside and west of Howell station area. The area in between (Bankhead, etc) is still pretty rough though. Going off of what Rick said, rehabbing a 1970's ranch is soooo much easier than a 1920's historic home that has not been maintained. So if you get those 100 year old homes, I think you need to be looking at ARV's of 250+
@Tiffany Allen Collier Heights has had several rehabs sell in the low to mid $200's. I sold one earlier this year that I rehabbed that contracted at $250k, but appraisal came in at $245k. it was on a great block and the house was like 3200 sqft. That was a fun one to do as it still had great bones and we just needed to rehab the inside. You can't change anything on the exterior that can be seen from the street so no changing windows and the I meet and stayed friendly with the HOA so that I wouldn't have any problems and they actually looked at for me during rehab against any intruders. I tried to buy another several months back and it had multiple offers and went above asking price so you really have to find an off market deal over there.
It's funny there are parts of 30318 that sell in the millions and other parts in the $40's.
I hope I can change the siding and windows because they are in terrible condition. I'm not in an HOA so hoping it's more lenient. I'm hoping I can get 190k-200k for mine when I'm done. You are right though, prices are all over the place.
Thanks for your post @Kevin Polite
@Tiffany Allen Just a point of clarification. In the neighborhoods you're talking about you don't usually need to worry about HOAs - the neighborhood associations are voluntary to join and the dues are minimal. You do need to worry about historic districts (Collier Heights, Oakland City, Adair Park, and others) because they add an additional layer of city permitting on exterior changes. Google "Atlanta certificate of appropriateness" to learn more. To be clear, engaging with the community as @Kevin Polite suggests is a good idea. I'm just pointing out that there are different regulatory regimes between neighborhoods.
Most of Oldknow Dr is in Collier Heights historic district, but not all of it.
Thank you @Dan Mahoney ! That is helpful.
@Kevin Polite I see your deal on Chalmers (nice rehab!), but don't see many others. I only have access to Zillow and only see 4 sold above $200 in the last 3 years. I'm trying to decide whether to go bigger on the rehab and shoot for a higher ARV. In your basement did you use laminate flooring?
@Tiffany Allen make sure you run your plans through the Historic Preservation/Urban Design Commission before you start any exterior improvements. They will issue a Stop Work Order and shut you down cold if they see any unapproved work going on.
I found the people from the Collier Heights Neighborhood Association very easy to work with.