New Rehab in Metro Atlanta Area

[Adah N.]

Hi Everyone,

I have been analyzing investment properties in the Atlanta area, so far none seem like a good deal. For example;

https://www.georgiamls.com/424-powers-ferry-rd-se-marietta-ga-30067/8749078

3 beds, 2 bath all brick ranch, 1400 sq ft built in 1953

Interior was dated, had extensive damage and because it was built in the 1950s, I estimated it would need extensive rehab including plumbing and electrical replacement.

Based on available comps I estimated an ARV of 270k, repairs 90k (rough estimate from 3 contractors). This brings

purchase price = .75*270-90 = 113k

Even if rehab can be done for a lot less, say 60k, then

Purchase price 2= .75 *270-60 = 143k

Perhaps I understated the ARV? Possible, however, with the current state of the economy 270k is probably not an understatement. Besides, there are other rehabbed properties for sale nearby going for 270k or less.

I did not bother to make an offer, now it sold for

190k. Based on condition of property and how quickly it sold I am guessing another investor purchased this property with cash? We must not be doing the same math. What am I missing?

Any input would be greatly appreciated. Thanks