All Forum Posts by: Robert DeBease

Thanks so much for your reply!  Here's what's she says, "It will be brand new when you're done with it. I use top dollar comps when looking at rehabbed resales. In this case, we're still within what I feel is a comfortable range."

When I asked her if she thought this range would still be valid come June of 2023 when it comes time to sell the property here's what she responded... 

"Who really knows, we thought life was completely over when Covid hit and it was the best years in terms of growth.😂 Lol
The market ebbs and flows. We're def in a down market...we always are during the holidays but we can never truly predict it. It's all risk vs reward..... and if you feels there's enough reward, risk it."

I'm seriously looking at a flip in the historic West End Atlanta area but I'm getting conflicting data and I need some help sorting things out. 

The purchase price of this three bedroom two bath 2100 square foot home is $230,000. The rehab estimate is about $150,000 but it could go as high as $220,000.  So this total purchase and job could go as low as $380,000 and as high as $450,000 not including sales  Commission.

When I look at the comparables over the last 3 months the average sale price is about $235 per square foot, which would put me only at a resale value of $495,000 ...not worth it.

However, there are comps from January of 2022 through July of 2022 that strongly support $300 per square foot putting the resale price of the house at $630,000... totally worth it.

My real estate agent, that I've  worked closely with for the last 4 years and have probably done about 15 deals with, ensures me she will definitely get $595,000 minimum for this property, and if I knew that for sure I would do the deal.

I'm also concerned about possibly a down trending Market approaching negatively impacting the resale value on this flip. But then again, maybe such a thing wouldn't affect the historic West End in Atlanta.

So my question is, should I go with the last 3 months comps or are comparables from January of 2022 through July of 2022 still valid comparables for this historic West End District in Atlanta?

Thanks so much for all your help.. it's greatly appreciated!