West End Atlanta Flip 30310

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West End Atlanta Flip 30310

Lynn Angus
Educator and Investor · Decatur, GA · Member since 2015 · 22 posts · 4 votes

Had an offer accepted on a house in Historic West End ATL...maybe a house that no one else wanted?  865 Rose Circle -- I know part of the pass-over may have been location, but with the Beltline coming in, the access to the Marta, and the fact that some rehabs on White St. and other surrounding streets are happening, I'm excited. This is our first flip, so of course we have doubters. We are getting bids at the end of this week. I've been studying comps, both listed and sold, and am curious about biggest bang for my buck, specifically in these areas (right now it's a 4/2):

1. Prioritize "Open concept" -- the kitchen is currently separated from the front room by a bedroom. Could open up that bedroom and then would have a 3/2 with open concept. BUT the master would have a jack and jill bath (or if we had an exclusive master, 2 of the bedrooms would only have a bathroom across the house)

2. Prioritize Master suite -- is this more important than open concept?  We could keep the master suite, and make one of the tiny bedrooms an eat-in kitchen.  A 3/2 with a master suite and a decent kitchen. Kitchen and eat-in area are separate from the front living area.

3. Prioritize # of Bedrooms - If we have a small master suite and a small kitchen with no eat-in area, we would still have a 4/2. (front room, shotgun hallway with bedrooms on each side, kitchen in the back. This would be the simplest and cheapest, but also a lower ARV, I'm sure.

Interested in opinions, especially from Atlantans who have tried to sell in West End. We think we can have an ARV of 175k or higher.

Thanks!

Lynn

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Azeez K.
Investor · Atlanta, GA · Member since 2013 · 646 posts · 392 votes
10y

Hi @Lynn Angus

Congratulations  on getting the house under contract. The location is not bad as it is closer to Adair Park and long term trends for the area are trending in the positive direction. There are some really sketchy parts of west end however, this does not seem to be like one. I am tagging @Rick Baggenstoss as he is our resident expert on the West End area and has great deal of experience in West End. 

Take a look at the market insights from September 2015 for 30310 zipcode. Good Luck and let us know how it turns out. 

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  • Azeez K.
    Investor · Atlanta, GA · Member since 2013 · 646 posts · 392 votes
    10y

    Hi @Lynn Angus

    Congratulations  on getting the house under contract. The location is not bad as it is closer to Adair Park and long term trends for the area are trending in the positive direction. There are some really sketchy parts of west end however, this does not seem to be like one. I am tagging @Rick Baggenstoss as he is our resident expert on the West End area and has great deal of experience in West End. 

    Take a look at the market insights from September 2015 for 30310 zipcode. Good Luck and let us know how it turns out. 

    2Reply
  • Rick Baggenstoss
    Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    10y

    @Lynn Angus   Congrats on picking up a West End deal and a first flip.  Should be exciting and challenging! 

    We can meet up at the one I'm doing on Holderness so you can get a feel for how I've laid out a 3/2.  Many of these houses are similar which makes it easier each time.

    I'd recommend drawing it on paper or even hiring a draftsperson to get the layout figured out.  As you learn, you can do your own drawings/plans for interior modification.

    0Reply
  • David Begley
    Investor · Atlanta, GA · Member since 2014 · 415 posts · 299 votes
    10y

    @Lynn Angus Congrats! And I'll be interested in hearing the more experienced flippers comment.   Without any more information, I would suggest #2.    Is the "tiny bedroom" adjacent to the kitchen so you can knock a wall out and open the kitchen/eating area up?

    At that price point I would think a Master Suite & decent kitchen would be attractive to more folks than those wishing for a 4th bedroom.  I suspect most folks in the market for 4+ bedrooms are in the $200K+ price range.  

    I presently have two 1950s rehabs listed in Decatur that I wish I'd configured differently.  Both are 3/1.5s with the .5 bathroom in the Master.  Both would probably be under contract before now if I would have converted the 1/2 bath to a full bath inside the Master bedroom, judging from the feedback from those that have already been through the houses - "love the house... wish the bathroom configuration was different...."  Oh well, live and learn!  

    Good luck!  I just purchased two West End properties but have not closed yet.  Let's stay in touch and compare notes as we progress.

    0Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    Congratulations! Prices on Rose Circle have really come up. 

    Most of these houses have dining rooms and they're usually set up: Living room, dining room, kitchen - all in a line behind each other. So, I suspect the bedroom you mention was actually set up as a dining room. Maybe they added a closet, so, that they could call it a bedroom?

    I would say to make it a 3/2. Since you're planning on flipping it, your end buyer is likely a single person or a couple, straight or gay, as they are the ones that are willing to move into the neighborhood. Not so much families with children, unless they're renters. So, the 4th bedroom is likely not as much in demand as a dining room would be.

    1Reply
  • Rick Baggenstoss
    Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    10y

    @Lynn Angusand @David Begley Open concept with Master Suite is pretty much required for that ARV. I'm not sure you would get any benefit from 4BR vs. 3BR. with your square footage. Keep in mind buyers are typically younger with no kids or young kid.

    0Reply
  • Lynn Angus
    OP
    Educator and Investor · Decatur, GA · Member since 2015 · 22 posts · 4 votes
    10y

    @Azeez K. thanks for the info!

    @David Begley I appreciate the info. That's the way I'm leaning, too. Unfortunately, the bedrooms are between the kitchen and the living room area, so there's no way to connect it all unless we lose the master (basically what you said, @Michaela G.). Would love to hear how your places are going. 

    @Rick Baggenstoss I looked at the link you posted about the Latham St. flip -- looks beautiful. I would love to see the Holderness place. My partner and I will be out there on Friday and Saturday and will PM you my contact info. 

    Thanks so much, all! We do have an "eat in area" that was built onto the back that the inspector said is hanging on by a thread (not up to code). I'm planning to tear it down and make that a deck, which is why we had to try to find additional dining space. 

    0Reply
  • Shaun Young
    Investor · Atlanta, GA · Member since 2015 · 15 posts · 2 votes
    10y
    Congrats!
    0Reply
  • Lynn Angus
    OP
    Educator and Investor · Decatur, GA · Member since 2015 · 22 posts · 4 votes
    10y

    Update -- Closed on the house. Dumpster is onsite, roof and gutters being replaced this week. 

    We are going with a 3/2 that includes a master suite. The "open concept" will happen with some French doors opening up the front room to what was the 4th bedroom. 

    Thanks for all of the advice and support! We're excited about this new frontier!

    0Reply
  • Chris Brown
    Rehabber/Contractor/Business Manager · Atlanta, GA · Member since 2015 · 140 posts · 70 votes
    10y

    Best of luck! I love that area of town. 

    0Reply
  • David Begley
    Investor · Atlanta, GA · Member since 2014 · 415 posts · 299 votes
    10y
    Originally posted by @Lynn Angus:

    Update -- Closed on the house. Dumpster is onsite, roof and gutters being replaced this week. 

    We are going with a 3/2 that includes a master suite. The "open concept" will happen with some French doors opening up the front room to what was the 4th bedroom. 

    Thanks for all of the advice and support! We're excited about this new frontier!

     Best of luck!  I've recently purchased two properties in the West End but haven't started rehabbing them yet.   I'm looking for more properties in select blocks or neighborhoods in the West End - Pittsburgh, Oakland City, and Adair Park if not yet overpriced. I'm planning to rehab-to-rent rather than flip on these properties.   I'll be interested to watch your progress. 

    0Reply
  • Rick Baggenstoss
    Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    10y

    Here's one I just finished and will sell end of the month ... 

    http://www.zillow.com/homedetails/630-Holderness-S...

    There was strong interest.  

    1Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    @Rick Baggenstoss

    Very nice. Are you hiring a stager or are those your furniture, that you move from house to house?

    0Reply
  • Rick Baggenstoss
    Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    10y

    I use a stager.   This is a new stager for me.  Kind of monochromatic, but they're better than my last one.

    @Michaela G.  glad you like it.

    0Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    I would have probably thrown in a couple of turquoise pillows or so, to make it pop, but as it is it's very calming and obviously it worked. 

    How doe they charge? Per room? Per piece? What does something like that cost? Just curious, as I've never had someone else stage a property.

    0Reply
  • Karen Petty
    Stockbridge, GA · Member since 2015 · 42 posts · 12 votes
    10y

    @Rick Baggenstoss you did a beautiful job on this rehab based on the pics.  Please post the details of the deal after it sells.  We newbies could certainly learn a lot from you.

    Thanks,

    Karen

    1Reply
  • Jay P.
    Investor · Atlanta, GA · Member since 2016 · 24 posts · 2 votes
    10y

    I am a newbe and have found a fire damaged property near Atlanta, as this would be my first rehab and first investment purchase, how you you go about find a good contractor to do the refrub?

    Any help would be welcome - 

    0Reply
  • Karen Petty
    Stockbridge, GA · Member since 2015 · 42 posts · 12 votes
    10y

    @Lynn Angus how is the rehab coming any updates?

    0Reply
  • Anna Watkins
    Investor · Atlanta, GA · Member since 2014 · 389 posts · 250 votes
    10y

    @Rick Baggenstoss - Dang, that house is even better with no dust on the floor and some stylin' furniture :-)  Congrats on the super speedy sale! (even without the turquoise pillows, which I do agree with @Michaela G. about)

    @Lynn Angus - How's Rose Circle coming along?

    1Reply
  • Rick Baggenstoss
    Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    10y

    @Michaela G.and @Anna Watkins I'm with you on the pillows.  They charge $2500 for 3 months.  You get to select the 'package' - a style that you want to communicate.  My previous stager charged $1800 for two months, $800 for each additional.  

    @Karen Petty I purchased for $51,800 off of MLS. I was the fastest. House had a homeless guy living in it for 5 years, no water, electricity.

    $200k sold price with some contributions towards closing and a very fancy washer/dryer.  

    My rehab costs were approximately $73k.  The rehab opened things up from front to back by widening some doorways and enlarging the kitchen.  I added a 2nd bath in the middle of the house.  Created a master en suite in the rear of the house.  

    All new systems.  Old roof was just a few years old.  It stayed.  Lots of hardwood, sheetrock repairs.  Some foundation work to water proof and level floors. 

    Five and half months close to close. $57k, profit. I had $40k or so in it.  A private lender covered the rest.  

    Big issues we had to deal with:

    - Homeless guy had been living there for five years and was loved by the neighbors.

    - Two big trees landed on the garage as we were wrapping up.

    - Saturated ground caused some leaks in the basement that weren't there for months prior.

    The rest was pretty smooth.

    1Reply
  • Lynn Angus
    OP
    Educator and Investor · Decatur, GA · Member since 2015 · 22 posts · 4 votes
    10y

    Hi everyone! I've been off the grid lately. Wedding, spring break, and...FRUSTRATING DELAYS with the city!!!!  :)  I can say I am learning a ton in this process.  The historic district has its own headaches, and because the house had already had some non-approved rehab that was not up to code, it felt like we were chasing a moving target. The last delay (with the arborist) is over, and now we are on the home stretch, even though if you drove by it wouldn't look like it!  The exciting part is, we already have some interest in the house. 

    0Reply
  • Lynn Angus
    OP
    Educator and Investor · Decatur, GA · Member since 2015 · 22 posts · 4 votes
    10y

    @Anna Watkins I forgot to answer your question. We had bids from 2 stagers. $1875 for 60 days, $400 for each additional month. My partner and I LOVE decorating and think we're pretty good at it -- however, the cost of renting plus the money we would have to put down PLUS risking my bad back made the stager look like a better deal. Also, they both included extras like art, lamps, towels, and other pops of color that the room rental places don't. All that said, during our rehab we have gotten to know the neighbors and have garnered quite a bit of interest. We may end up not staging at all. 

    @Rick Baggenstoss Where are you working now? I heard there was a house on Holderness that has liens because of approval problems. The house behind us on White St. also reportedly has a stop work order and a lien AND has a sale pending. The delays have been a pain, but we're so glad we've been doing it right.

    0Reply
  • Rick Baggenstoss
    Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    10y

    Hi @Lynn Angus et al.  I am working on a house in Grant Park and finishing a pop top in City of Decatur.      Also wrapping up work to get a couple of rentals on the market.  I'm also looking for new deals, especially in the West End.  

    Glad to hear you're wrapping up.  There's a ton of interest in the West End now from retail buyers and flippers.  I'm sure you'll do well.  Can't wait to see the finished product.

    0Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y
    Originally posted by @Rick Baggenstoss:

    Hi @Lynn Angus et al.  I am working on a house in Grant Park and finishing a pop top in City of Decatur.      Also wrapping up work to get a couple of rentals on the market.  I'm also looking for new deals, especially in the West End.  

    Glad to hear you're wrapping up.  There's a ton of interest in the West End now from retail buyers and flippers.  I'm sure you'll do well.  Can't wait to see the finished product.

     I'd love to see your rehab in Grant Park, if you're willing to show it some time. That's my stomping ground and I love the old victorians.

    0Reply
  • Rick Baggenstoss
    Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    10y

    @Michaela G.

    Intown rehabbers will be at my house and another a few houses towards Grant Park, same street.  Mine is officially in Peoplestown about 5 houses from Hill St. on Atlanta Ave. 

    There's a massive water retention project going on, so it's been a bear to finish when we can't get materials delivered to the house.  We're trying to finish but appliances, gutters, and insulation have been difficult without driveway access.

    However, when City of Atlanta finishes, it will have a beautiful brick paver street and a new park a couple blocks away.

    0Reply
  • Brian Watkins
    Real Estate Investor · Atlanta, GA · Member since 2013 · 122 posts · 36 votes
    9y

    Does anyone on this thread still feel the same about Westend beltline? More specifically Dimmock Street. From my understanding there is a turf war going on right now. If this is to be the future of the westend beltline how soon do you believe the area will get cleaned up in regards to crime? 

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