Property : Single Family Home Location: Atlanta - USA 2 House across this project: Atlanta- Quadplex to Single Family Conversion We bought few on this street and other investors are in process of rehab of surrounding houses Why: 1. Buy n Hold 2. Renovate n Flip Numbers: 1. Buy n Hold Purchase Price: $100K Gross Rent: $850 per month X 12 = $10200 Net Rent: $850 * 7 = $5950 Net yield: 5.95% 2. Renovate n Flip Haven't had a chance to get an quote for rehab as yet - hoping it will be around $20-$25K at best! At High Level: $100k Buy $25K Rehab $12k Selling cost $5k Misc ____________________ $142k Total Estimated Resale: $200K-$215K Profit: $50K-$65k Approx!
I have 13 properties in Atlanta been renting since 2011, never vacant, and never had a problem finding a tenant, rents have been soaring since 2013. I have always had multiple applicants. Not an issue, if we are talking Perth, well you could be sitting and waiting for a tenant, never seen anything like this before, oversupply
It's already leased! Anything around $900 -$1200 per month rent market is hot! I saw multi unit of 80 leased in two weeks - that is 6 weeks ago when I was in Atlanta!
25k rehab and it almost doubles in value? i realise 25k goes further..but still, i find it hard to believe
Crazy stuff really. You have to buy at the right price, significantly under market value Buying prior to it hitting the open market helps, but you need the contacts/wholesalers Belt line in Atlanta (Google this) is gentrifying, gone from hood to funky hipster ville. We purchased a block of land for 50k in July 2016, they sold the block across road for 109k within 6 months, Building in progress, we are just buying as many as we can, flipping, developing, whatever works
not sure the cap gains over 5 years is comparable to cap gains for a 25k reno on a 110k house, with no (little) holding time. surely some of the hotness would be factored into the price, no matter how good your contacts are
There are lot of factors that come in to play when buying such deal! Cash buy Portfolio liquidation Unhappy landlord with tenenats issues wanting to get out of drama Repairs Due taxes Lien If one can secure sub $100k decent house around beltline - you are in the game. This particular street is changing its face - community garden across the property - new houses -school, etc. Turnkey product in surroundings are selling for $120 sq foot You do the maths $120 x 1800 sq foot $216000 Local flip players would work on min 30% margin on flip deals - we are at around 20% Only way to get in is to cut profit margin + cash buy + quick closing