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.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing