Fix & Flip Going Sideways - NEED ADVICE 🙏

Atlanta, Georgia
Rehabbing & House Flipping
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Fix & Flip Going Sideways - NEED ADVICE 🙏

Chris Shon
Member since 2023 · 17 posts · 9 votes

Hey BP community

My business partner and I are in the middle of a tough situation on a remote flip project in Decatur, GA (zip 30032), and we’re looking for advice from seasoned investors who’ve been through similar. We’re based in Los Angeles and open to creative or unconventional strategies as long as they help preserve capital or minimize losses. 

We’d strongly prefer to exit with at least a break-even outcome, or pivot to a hold strategy that preserves the capital and gives us another shot at resale in 2026 when market conditions might improve.

Property Overview

  • Address: 2326 Mark Trail, Decatur, GA 30032
    Purchase Price: $198,000 (Sept 2024)
    Financing: $248,900 Hard Money Loan (HML) — extended until Sept 23, 2025
    Monthly Holding Costs: $2,800
    All-in Costs (w/ agent fees, holding, rehab, staging, overages): $354,174

Originally a 3 bed / 1 bath with a bonus room. The plan was to convert it to a fully permitted 4 bed / 2 bath with a back patio and flip it by Feb 2025. Rehab delays and permitting issues pushed us into June 2025, and reno is only ~75% complete.

Renovation Status

  • - Permits for the addition are just getting finalized. But contractor hasn't made any progress in over 4 weeks. 
    - Floor joists for the addition are exposed in the back
    - Second bathroom and closet still need to be built
    - Back patio and landscaping still pending
    - Last draw from HML will fund completion (already built into cost basis)

ARV & Comps

We originally comped the flip at $375,000+. Now, based on recent comps and our contractor’s finish quality, we’re realistically looking at $325K–$345K on the open market.

Recent Comps:

- 4/2s in similar finish: $299, $320K, $340K, $355K
- 3/1s: $220K–$270K

Options We’re Weighing

Option

Net Result

Notes

1. Sell As-Is (3/1)

~ -$73K loss

Fire sale — not viable

2. Refi + Long-Term Rent (LTR)

~ -$46K loss

Rents ~$2,200/mo, negative cash flow

3. Refi + STR or MTR

Hold + slight cashflow
(Keep ~46K in the deal)

- ~$300/mo with STR, goal to sell in 12-18 months.
- $12,000+ additional capital required to furnish. 
- Self Managing will be tough being remote. 
- Property Management costs would null out cashflow. 

4. Finish & Sell as 4/2 at $335K

~ $27K loss 
(Break even at $355K)

- $360K is unlikely now based on finish level.

What would you do in this situation?

  • Has anyone been in a similar position? 

  • Are we missing creative strategies that might open up other opportunities?

  • Would you STR this property or MTR it and ride it out?

  • Would you finish the flip and price aggressively to just get it gone?

Appreciate any advice, thoughts or critiques. We want to learn and make the best possible decision at this point. Feeling very defeated from this being our first investment. We really thought we had a good deal with a lot of cushion, but we made bad choices and gave our contractor too much time and trust. 

Thanks in advance 🙏

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Most Popular Reply

Mark Faulkner
Real Estate Consultant · Roswell, GA · Member since 2023 · 50 posts · 26 votes
1y

@Chris Shon 

I am a local realtor and know that neighborhood VERY well. I lived there for 2 years and still have a long-term rental there. I used to walk by that property every day to walk my dogs!! Small world LOL. 

Please feel free to reach out and let's see if I can help with your situation. I have a pocket full of contractors who are able and willing to help quickly! 

Thanks, 

Mark 

4Reply
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  • Andy SabischPro Member
    Investor · Jackson, MS · Member since 2021 · 657 posts · 559 votes
    1y

    This is a good example of the pitfalls of remote investing . . . not trying to rub salt into your wounds.  Permits are always an unknown and a few calls to local investors or REIGs beforehand might have identified what the typical time frame was (hate to rely on contractors as they will often use that Money Pit movie line . . . 2 weeks!)  

    As far as options, do you know that Atlanta has implemented restrictions on STR and MTR properties with additional licensing and requirements? If you have not looked into them, you may find more headaches than you had bargained for. Add the TRUE cost of the STR / MTR game being remote and your net may disappear like smoke especially in a market that is regulated and saturated in many parts.

    You may want to reach out to a local REIG member and see if they could work with you for some percentage to take it to the finish line and sell the property (Atlanta Real Estate Investor Group | Facebook).

    With the volatility of the market today and trying to do this remote, investors winding up in this situation will become more common.  Hopefully you can get the property finished and marketed so you come out relatively unscathed but smarter for the next one.

    2Reply
  • Mark Faulkner
    Real Estate Consultant · Roswell, GA · Member since 2023 · 50 posts · 26 votes
    1y

    @Chris Shon 

    I am a local realtor and know that neighborhood VERY well. I lived there for 2 years and still have a long-term rental there. I used to walk by that property every day to walk my dogs!! Small world LOL. 

    Please feel free to reach out and let's see if I can help with your situation. I have a pocket full of contractors who are able and willing to help quickly! 

    Thanks, 

    Mark 

    4Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1y

    All around it's a tough pill to swallow. If you can find a GC and realistically get the project done I would finish it and sell. That would further drive up holding costs and who knows what the market has in 2-3 months. You can connect with investors to get a feel for As Is where you'd net. Sorry you are dealing with this, permits is something I avoid when working with clients. Being remote there are so many delays and unknowns where it's not worth the head ache. 

    1Reply
    • Chris Shon
      OP
      Member since 2023 · 17 posts · 9 votes
      1y
      Quote from @Caleb Brown:

      All around it's a tough pill to swallow. If you can find a GC and realistically get the project done I would finish it and sell. That would further drive up holding costs and who knows what the market has in 2-3 months. You can connect with investors to get a feel for As Is where you'd net. Sorry you are dealing with this, permits is something I avoid when working with clients. Being remote there are so many delays and unknowns where it's not worth the head ache. 

      This is the goal for the time being. I agree remote investing and permits are not a good mix!
      0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    1y

    Without even looking at the comps, this is my advice... If you are looking to breakeven or walkaway before turning to a rental (i.e. MTR, STR, or LTR).. You need to look at the option of going to the bottom dollar you can... Seems like 359,900 would be it... And see what happens.. then drop till you hit a point you get an offer..

    The market across the US has had a high increase in inventory which has had a huge impact on demand... So you will need to make sure you are watching that and adjusting accordingly. 

    The McKernan Group4.954 Reviews
    WebsiteView Page
    1Reply
  • Jordan Robinson
    Real Estate Agent · Atlanta, GA · Member since 2013 · 46 posts · 34 votes
    1y

    Another option to consider for that neighborhood is doing a coliving conversion and renting it out via a platform like PadSplit. Like going with STR/MTR, you would incur some additional costs with furnishing and possibly adding some partion walls for bedrooms, but cashflow may be somewhat higher and vacancy may be lower than STR. It may also be less management intensive than STR due to fewer turns. Once it's stabilized you may be able to sell to another coliving buy and hold investor.

    0Reply
    • Josh Bowser
      Real Estate Agent · Atlanta, GA · Member since 2020 · 414 posts · 233 votes
      1y
      Quote from @Jordan Robinson:

      Another option to consider for that neighborhood is doing a coliving conversion and renting it out via a platform like PadSplit. Like going with STR/MTR, you would incur some additional costs with furnishing and possibly adding some partion walls for bedrooms, but cashflow may be somewhat higher and vacancy may be lower than STR. It may also be less management intensive than STR due to fewer turns. Once it's stabilized you may be able to sell to another coliving buy and hold investor.

      Not to be a debby downer here but I don't think this will end up penciling to operate on PadSplit (typically longer term stays.. 6 months+.. so lower room rates/revenues). You typically need something closer to 2000 sqft or a few ensuites for it to make sense to padsplit vs. other options. 


      To Jordan's point, renting out the individual rooms as STRs (less than 30 day stays) might make more sense if you're sourcing your own tenants. Actually chatted with a guy the other day that is sourcing tenants for coliving STRs from TikTok (wild!). 

      0Reply
  • Deborah Wodell
    Lender · NC · Member since 2024 · 344 posts · 115 votes
    1y

    You're in a tough but not impossible spot. I'd personally push to finish the project and get it listed ASAP—even if you exit at a slight loss, you're at least preserving capital and sanity. Waiting until 2026 or pivoting to STR/MTR adds risk and complexity, especially with Atlanta's changing regulations and the fact that you're remote. If a local agent or investor can help get a reliable contractor on it quickly, that's worth exploring now. At this stage, time is your biggest enemy—wrapping it up and pricing it competitively may be the cleanest way out.

    0Reply
  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    1y

    Hold , Refi and Rent 

    0Reply
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