By Abhi Golhar
I like flips. I am a flipper.
I like where trends are headed, and I like capital gains from flips.
That is what I am interested in. I am not interested right now in buy-and-hold.
Flipping is never that simple, and it is certainly not for everybody.
Let me show you how I work a flip
I am going to take you through a house we recently bought in Atlanta in this video and show you what we plan to do on this flip, room by room.
This house is at 368 Elvira St. S.E. in Atlanta, and our purchase price was $40,000.
As you can see in the video, we need to do a little bit of repair. The front porch needs a bit of uplift and some landscaping definitely on the little walkway. Overall we are looking at an after repair value between $140,000 and $150,000 to be on the safe side. We could probably push between $160,000 and $170,000 but if we need a quick sale we will stay with the lower number.
Let’s walk through the house
We walk in and it is really a boxy feel, something I am not a big fan of. We will need to replace about 20 windows. And, around the side of the fireplace we need to cut down a wall to open it up so we access a second room and have a dual fireplace on each side of the wall. Also, we will replace the hardwoods on the floor. On toward the kitchen, I would get rid of a wall and open up the kitchen with a little bit of a bar area.
Let’s go to the bedrooms
Right now, as it stands, this is a three-bedroom, one-bath. We intend to make it a three-bedroom, two-bath. We will take out some walls, and wall off other areas.
We will upgrade the existing bathroom. On the master bedroom, we will create a space through the wall we will punch out to the mini- porch on the back to make a master bath.
If we can expand the footprint about 200 to 250 square feet, then we can enlarge the kitchen a little bit and go from there.
Overall here is what we are looking at: The numbers are $40,000 acquisition, $60,000 in renovations, and expected resale between $140,000 and $150,000. It should be a quick in and out, and take about six months to do.
About the author:
Abhi Golhar is Managing Partner at Summit & Crowne Partners, an Atlanta-based real estate investment firm. Since 2003, Abhi has used a “value-added” approach to capitalize on real estate renovation, new construction and development opportunities in the Midwest and Southeast United States. He actively educates and works with seasoned debt and equity investors to employ market-driven investment strategies that yield success. Abhi holds a B.S. degree in Electrical Engineering from the University of Michigan. You may find him tweeting @AbhiGolhar and delivering value to investors on #RealEstateDealTalk on Youtube and Periscope.