What part of the Greater Atlanta Area is best for fix and flip

Question

Pre-COVID, I was in ATL looking at houses to fix up. I got COVID while there. I might have caught it at the airport. There were only two known cases in the United States, and I didn't know I had it for several days. Anyhow, as you all know, COVID changed everything. If I only had got those properties pre-COVID. They are probably at least double now without upgrades. What neighborhoods are the opportunities in? I was looking at sub $100K purchases. I was in the Buckhead area, but I think that ship has sailed. We are looking for advice on the best neighborhood to find a few flips within a block or 2 of each other. While you're at it, would you be as kind as to give me a vote? I am newer to BP and trying to find my way. Thanks for any help. Maybe you're in/from ATL and want to JV?

Ricardo S. · Answer

This all depends on your budget and experience/ risk level.

Alot of these A class neighborhoods have a high barrier of entry on the purchase and deals are hard to find. Good deals go under contract within 24hours.

Despite this high interest rate environment.

And if you do land on one. I would do my best to hold it for the long term via a DSCR loan instead of selling.

There are ALOT of unfinished projects hitting the MLS due to out of state, inexperienced investors using shady contractors and having unrealistic rehab budgets. So the best thing you can do is partner with someone that lives here and has proven experience.

I just finished rehab last week on a flip a few minutes from the Mercedes Benz Stadium, 30314 Zip-code close to Mozley Park. Had a tough time getting permits approved due to arborist requirements but I got it done because having a team is the most important thing in this business. During that time, I saw a few unfinished houses hit the market in the same neighborhood due to the fact that they were unable to obtain a permit or cant pass framing inspection.

Now , if your plan is to just repaint a house and redo the kitchen like HGTV and make $50k+ thats fine. Just know that that’s unrealistic and most of the homes here are very old and require alot of work to bring up to code.

I don’t post as often but DM me if you or anyone have any questions.

Ben Firstenberg · Answer

I can speak to this a little bit. Grant is correct, it's not an actual designation. It is somewhat subjective but it's also a "know it when you see it" type of thing. Generally:

Class A -- High end, luxury. Think SFHs for $600k+ or fully renovated apartments renting for $2k+. Examples in Atlanta: Buckhead, Brookhaven, Dunwoody, Sandy Springs.

Class B -- Mid tier, nice, safe, quiet but not luxury. Think SFHs for $300-500k. In Atlanta, I think of this as like Norcross, Tucker, maybe Chamblee and Doraville, Marietta.

Class C -- low end, possibly low quality or higher crime. I won't give Atlanta examples as I don't want to insult anyone. But this is definitely know it when you see it. Think broken down homes, low quality retail. The kinds of places you don't want to be at night.

Class D -- Class D is like... REALLY bad. Places you wouldn't want to go even during the day time. It's rare to hear people talk about this.

Hope that helps. As you can tell, it's a rough guideline and not official at all. It's useful to help people talk about properties/neighborhoods with similar language. It's easier to say "It's a Class A neighborhood" than it is to describe it in detail.

Branden, to answer your question about locations to flip in Atlanta, there are a lot of great opportunities in Cobb and Gwinnett counties. I also really like Decatur for flips.

Lateefah Mathews · Answer

I agree that classification of a neighborhood is subjective and can vary depending on who is making the classification. There are no "strict guidelines" to use however if you're looking at determining whether a neighborhood is Class A you can utilize the following factors as a guideline:

Location: Neighborhoods in a desirable area (good schools, close to the city, easy transportation).

Crime Rate: The lower the crime rates the better. Safe and secure neighborhoods are easily considered Class A.

Income Levels: Neighborhoods with high average incomes are a plus.

Housing Quality: The condition and age of housing stock play a huge role in classification. Areas with new or recently renovated homes are best.

Amenities: Neighborhoods with parks, recreation facilities or shopping centers.

Here are some helpful websites that can assist you in determining the classification or quality of a neighborhood. www.neighborhoodscout.com www.walkscore.com or www.greatschools.org

Holly Barrett · Answer

@Branden Jordan

I’d look at Hall County (Agra jobs on the rise and Gwinnett residents shifting north) and there are a lot of jobs coming in the Solar space in the coming years up in Dalton.

Jonathan Klemm · Answer

Hey @Branden Jordan - COVID got us all, but I've tried to look at it as an opportunity not a negative.  Downcycles are needed to create upcycles.

As for your question about neighborhoods with opportunities for sub-$100K purchases, I would recommend checking out some of the following areas:

• East Point
• Grovetown
• College Park
• Hapeville
• Riverdale

These areas are all located within a few miles of Buckhead and offer a variety of properties in the sub-$100K range.

You should definitely connect with my partner @Bolanle Ogunmakin. We are a Chicago-based GC-tech (general contracting technology) company but expanding into the Atlanta market where my partner is and we are already looking to partner with local investors

Lateefah Mathews · Answer

@Branden Jordan, I'm a Local Investor agent here. I've listed a few neighborhoods below where there's been a lot of recent Fix/Flip activity. These neighborhoods are good if you're looking to buy in the sub 100k range.  If you are not in state, it's advisable have boots on the ground to manage your rehab projects.

▪Adair Park ▪Oakland Park/City ▪Pittsburg ▪Sylvan Hills ▪Vine City ▪Grove Park ▪West End ▪Westview

Trent B Paul · Answer

The most important factor for investors to consider when it comes to making a profit off of a flip is who is my end buyer, what are they looking for, where are they looking and how long does it typically take to find that right buyer in that market.

When reselling you want to go where the demand is because you dont want your listing sitting on the market and having to reduce the price to sell. More often than not, that is A-B class neighborhoods showing positive migration trends and with elementary or high schools rated 6 or above.

Some more in demand areas would be Marietta, Smyrna, Roswell, Sandy Springs Duluth and Suwanee. Some more affordable areas that can still make a good profit on a quality flip include areas on the outskirts of the perimeter that are seeing population increases from homebuyers chasing affordability such as Conyers, Powder Springs, Kennesaw, Acworth and Lawrenceville. Henry County on the south side of Atlanta is also seeing positive trends.

Last thing I would recommend would be to consider holding at least a few flips yourself as most long time flippers i work with/run across mention their biggest regret is not holding some of their best flips and letting someone else reap the many benefits of ownership.

Please connect with a local agent who understands these trends and how they play into a successful REI strategy.

Josh Bowser · Answer

Hey Branden,

I'm in Kennesaw so my answer is going to be a little biased. I have pretty strong conviction in Cobb + Bartow county within 2-3 miles i-75 and the area in between i-75 and i-575. Downside is a ton of competition both from investors and owner occupied. Upside is there demand on the disposition side as the demographics in these areas are strong.

Branden Jordan · Answer

An unofficial grade doesn't seem to be of much use. Especially if you are comparing different people's opinions. Unless there is a standard and set parameters for these grades, I don't see how it can hold up for a CMA.

What part of the Greater Atlanta Area is best for fix and flip

Most Popular Reply