I have 2 properties under contract in the Vine City/ English Avenue neighborhoods. Mostly all the homes are dilapidated/abandoned or poorly maintained with low income rentals. There aren't really enough comps in the area to get an accurate idea imo but I think the $125-150k range is reasonable. Is it best to buy and hold until further developments are present, or does a fix and flip seem realistic? I appreciate all comments and advice
Hi Wesley, I also have 2 properties in the same area. My focus was solely based on a few key things: 1. I had some capital to spend and didn't want a mortgage, and like you said the homes in this area are mostly dilapidated so you can get them cheap 2. Proximity to GA Tech and downtown Atlanta which is spending on money on revitalizing the Westside 3. Probably the single most important factor to me buying in this area is the likelihood of the Beltline and the creation of the Westside Reservoir Park in the coming years. If you need more info on what's going on with that let me know. To answer your specific question though, I think there are people with both mindsets. I've been following one flipper who has sold about 4-5 properties in the past 1.5-2 years and he seems to be selling them in the $150-175k range. No clue what he is buying them for or what he has invested but my guess is he is pulling in $50-60k profit on each. If you are full time in this and have the resources/contractors to flip quickly, you can probably make the same. I think most people are buying and waiting for things in the area to change. I myself am about 85% complete on my first property and maybe only 20% on my second. I don't have a ton of capital right now and I don't want to get a loan, but it may come to that because I really want to finish it this year. Just curious, what resources do you have as far as contractors/project management?
Flip fast or don't start them. You *may* lose a lot of materials along the way. Having crews working almost 24x7 is the way to go.
@Austin Longshore thanks for replying. At the moment a contractor is what I need most. I have a loan for the repairs but so far out of 4 contractors, 3 have backed out, and 1 was way overpriced. The home was completely gutted. And is mostly framed with some plumbing but no hvac or electric
How did you find the properties you bought in Vine City? Do you have an agent you work with?
Interesting I live here in Castleberry Hill (CH). Purchase my condo about 4 years ago off Chapel St. Vine City is apart of our neighborhood association so if your ever interested in any particulars in the area let me know. As of now there’s a Hard Rock Hotel underway right off Centennial Olympic Park dr in CH. And off Northside drive by the Friendship Baptist Senior home (directly across from complex) the project homes have been demolished preparing for a multi-million dollar mixed-used development. All of these additions planned to be ready by the Super Bowl here in 2019.
Oh and if you need “eyes on the ground” or pictures/videos of your property or areas shoot me a message.
I recently purchased in the neighborhood myself (for primary home, not investment). I’ve been in Atlanta for almost 5 years now and I would say you could do probably so either or. Fix and flip I think is reasonable for the prices you stated, just bc of all the development coming into the area, as someone else mentioned already. There’s definitely a demand for LIVABLE, quality housing in that neighborhood.
Holding it I think would also be a good investment, for the same reasons. Good luck w your investment!
I have been looking at the Castleberry Hill area and Mozely Park. I am intrigued with the area because of the Beltline that is proposed for that area. The rub is I have a full time job and do not have time to quarterback a rehab. What are the experiences here? Find a contractor (but that cost more because of the markup the contractor will charge) or try and piece the jobs out yourself (which will take more time and I don't have experience in home construction)? This is the only piece I need to finalize to start putting in offer and get going.
Last time I lived on the Westside, Vine City was a no-go zone, with not much investment happening. I know the stadium is near there (and the awesome Busy Bee Cafe), and the Beltline is slated to come soon, but how much progress is all of that actually generating in the area? I was thinking the stadium might rejuvenate some of the commercial properties nearby, but then I'm not sure if it will given that most stadium-goers won't wander too far into the neighborhood. I'm curious what all of your thoughts are on what's propelling the neighborhood, besides the general REI frenzy in Atlanta at the moment.
To further clarify...
The latest developments:
- Hard Rock Hotel has broken ground and scheduled to be completed by the Super Bowl here in Feb 2019. This will be in CH off Centennial Olympic Park and Chapel
- Across from Busy Bee Cafe there's a Chic-Fil-A being built. Grand opening this month. This is off of MLK Blvd.
- It's going to be a mixed-use retail residential development off Northside Dr and Mitchell St. The project homes were demolished last summer to make way for this multi-million dollar investment. ETA see #1
Those are just a few developments occurring in addition to landscaping (planting trees, etc, improving sidewalks) throughout our area.
Hope this helps.
I am bullish on the area around Vine City and English Avenue from long term point of view and have been looking to buying properties in the area. I have a commercial lot very close to the new stadium and have been looking to pick up additional properties for long term buy and hold. As @Sharon Deloris pointed out there are a lot of developments in the pipeline and I see that as positive sign.
In regards to your question about buy and hold or fix and flip depends on your objective and cost of capital.
Hope this helps! Good luck
hey Danny is this program only for first time buyers ?
@Keidrick Cole I am a realtor in the metro Atlanta area. Feel free to reach out if you in need of a Realtor to help you find properties.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing