Atlanta BRRRR Turns Into Tear Down - BTBRRR?

[Randy Smith]

My wife and I currently have 4 rentals and we recently purchased a 5th home to BRRRR in Atlanta. Unfortunately, our inspection suggested some minor structural damage, but we've since come to find out that we'll likely need to tear the structure down and completely start from scratch. Fortunately, our preliminary analysis included rehab costs of up to $100,000 which still results in about $300/month in cash flow after mortgage, insurance, Capex, Repairs, vacancy and property management.

Our plan now is to get bids from numerous contractors to scrap this structure and build a brand new 4/2 with about 1200 sq ft, and we're seeing bids around $85-$110/sq ft. If we are all in for about $200,000 we'll hit the 1% rule on our rental and easily be able to get $275,000-$300,000+ ARV and pull all of our money out.

My questions is this:  What advice/suggestions might you have for someone living in Phoenix and investing in Atlanta with experience on 2 full gut BRRRRs and two turnkey rentals?