Hello All,
First time poster, long time follower.
I'll start with an overview of a deal I've been structuring over the past few weeks. This is an off market 3/2 1,670 w/ basement SFR in Riverdale, GA (specifically, Embassy Estates, which is a desirable part of Riverdale). My initial offer was for $150k assuming a rehab cost of $20k. However, after inspection and my contractor's quote, the total rehab cost will be about $50k. If you're curious why the rehab cost more than doubled, the home has been vacant for 3-4 years and has mold, leaky pipes, needs a new 200 sq ft deck, and in general needs a pretty heavy facelift. While there's a lot of work that needs to be done, the house has great bones and was a quality build for its time. All in all, the seller ultimately wanted a quick and easy transaction so they agreed to my counter of $120k. Closing is on 5/20. This will be an all cash transaction.
Now's the part where I ask for advice. My initial plan was to make this a rental. My all in cost would be $170-175k and I could get $1500-1550/month based on comps and data from my PM. However, after speaking with a couple agents who represented nearby listings, my understanding is the home could fetch a $215-220k ARV as a flip (would require stainless steel appliances, granite countertops, custom finishes, etc.). Assuming my ARV assumptions are correct, the right investor could make this a great flip. However, I do not believe I am the right investor as flipping is not my expertise. Should I proceed as planned or sell the house 'as-is' to a flipper? I would clear out the house and cover mold remediation beforehand. Also, I'd be curious to hear from any flippers in the Atlanta area what you would pay for the home 'as is' and I would also be willing to provide my contractor's rehab estimate and inspection report. Feel free to message me privately.
Best,
Brendan
