In Real Estate Deal Talk Episode 10, pulled from our archives, we take a look at two possible deals in Cabbagetown, a really, really nice area of Atlanta. Actually, I’m a pretty big fan of it.
As you can see in the video, the first property is in total disarray, but not so much that we would have to tear it down. This would be more like a rehab, total-gut project. The plan is to buy it for about $89,000 to $90,000 and rehab it into a 3-bedroom, 2½-bath. Then I think we could sell it for around $349,000. That would be pretty good for us.
About two or three streets over from that is a second property that our Realtor who specializes in working with investors showed us.
The interesting part here is that the lot is freaking huge! From fence to fence it is 79 feet. Along with a huge area of side yard and the main house out front, there is what looks like a carriage house in the back. You have a lot of square footage—absolutely a gold mine of a find.
Here’s how the numbers stack up:
We could probably buy this for $120,000 and make it a 3½- or 4-bedroom. With the available space, we could even include a swimming pool and a two-car garage.
Now, the funny thing about Cabbagetown is that you don’t find a lot of these family, move-in-ready type properties. Cabbagetown is notorious for 2-bedroom/2-bathroom, duplex types of homes. So if we put up a nicely done, larger home – similar to one right next door that probably sold for $350,000 to $390,000 – in a market that doesn’t usually have this but where people are willing to invest and buy immediately, then you’re looking at a pretty good profit.
So we have the $120,000 buy. Then let’s just say we put another $120,000 or so in to build, putting us close to $250,000. We think we can get this sold at a minimum of $399,000 and maybe even push it to $425,000 to $430,000.
Doing the right homework, working with the city, getting things done, having the right prices and builders, all these things, and then putting out a good product in a community that really needs it – I think it’s a winner.
You can watch the video here:
https://www.youtube.com/watch?v=8JljPrAcR1c
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