Flipping in Atlanta during Coronavirus crisis

[Ivan Figueiredo]

Hi BP community. I am scheduled to close on a flip in Decatur, Atlanta GA in the first half of April. The deal is as follows:

• Purchase price: $132,000
• Rehab: $165,000 (adding 2nd story of ~1,000 sqft; renovation of existing base floor of 1,203 sqft)
• ARV: $369,000 (based on comps, it could sell as high as $400,000)
• Profit: $44,000 if I borrow mostly from hard money (I will try to use a HELOC or conventional loan to increase the profit)

I have an architect and a general contractor lined up. 3 months of rehab. We will use top quality material, as in some of the other recently renovated houses in the area.

Due to Coronavirus situation, I've heard from some investors and brokers that banks will raise interest rates and house prices will go down as soon as in 2 - 3 months. The advice was to hold off on the investment now.

I am seeking for advice from the BP community, please. Any thoughts?