Druid Hills | Atlanta, GA Live, Fix and Flip

[Stephen Counts]

Investment Info:

Single-family residence fix & flip investment in Atlanta.

Purchase price: $319,000
Cash invested: $50,000
Sale price: $459,000

Live, fix and flip in Druid Hills Neighborhood Atlanta Georgia. Near Virgina Highlands and Emory University.

What made you interested in investing in this type of deal?

Neighborhood and location is awesome. Also, my wife and I loved the spanish style of the home, which is unique for Atlanta.

How did you find this deal and how did you negotiate it?

When we inquired about the home the property was under contract with a first time home buyer. The property needed a ton of work and we had suspicions that the buyers that were under contract would panic and back out after getting their inspection report. We didn't put in a back up offer, but we did indicate that we were very interested and the broker called us immediately when the property fell out of contract.

How did you finance this deal?

Freddie 95% financing

How did you add value to the deal?

Gut rehab. The property was built in the 1920's and had been updated in the 1950's.

What was the outcome?

We made a 25% property level return. However, on our $65,950 combined down payment and out of pocket capital improvements we made a 1.5x multiple on our invested capital.

Lessons learned? Challenges?

We tried to include renovation costs in our loan, but the lender said we couldn't at the last hour before closing. We ended up switching lenders due to the frustration and lucky we had the cash to invest for the capital improvements.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I highly recommend Alex Wilkinson as a real estate professional. Without him this deal would not have been possible.