Has anyone had experience flipping a house like the one pictured here that backs up to a highway? If you are familiar with this are of Atlanta and 285 this is a busy road. The house itself may work out. I'm concerned on the affect this will have on the ARV. Right outside the house it is LOUD, inside I don't think will be an issue once some windows get replaced.
@Robert E Bogino I flipped a house that had train tracks in the back. In my case, the area was in demand so I received about $25K less for the house than the ones across the street (10%). I factored that in before I bought it so it was not the end of the world. In my experience, people do not like noisy areas.
@Max Keller thanks that's what I'm afraid of the deal most likely cannot take a 10% cut in the ARV.
@Robert E Bogino - Let's hope this one works out for the best, but in the future......definitely factor that into the equation before you make an offer and decision. Let's grab a coffee and catch up. You going to be at Real Estate Connections tomorrow evening?
@Denny Faircloth Thanks for the input. Always appreciated! I did not offer on the property because I didn't feel it could withstand a 10% drop in ARV.
Let’s get together soon! I was not aware there was a meet up tomorrow.
@Robert E Bogino I would not only reduce ARV by 10% but I would increase holding time to 90 days past "ready to sell". I think you'll have to wait awhile for the right buyer even if you've done a great job on the house.
A friend recently did this next to a railroad track and ARV was reduced by 20%, holding time was 6 months past ready. Everyone got hammered including HML. It's just not worth the risk/uncertainty unless you're in at a very low price. Even then, I'd make sure you'd want to keep it as a rental because it might be the best way.
@Rick Baggenstoss thanks for the input. Exactly, just too many variables in this one to make it a good deal. I’m sure they got full price offers on it. I went to view the property one hour after it was listed and 2 more investors pulled in behind me. But I usually do work out having to result to a rental for a flip as an exit strategy if it really came down to it.
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