This week I will be closing on my first house that I plan on renovating and selling in the next few months. I have been looking for a low-end flip for over a year now and I finally found one via NetWorth Reality in Atlanta.
Throughout this year long process, I have learned tons about the Atlanta real estate market and in general what to look for in purchasing an investment property.
My criteria for my first purchase has been:
- The property value + $15k (for wiggle room) must be within my budget
- No seriously large repairs should be necessary. (roof and foundation need to be in good condition)
- Near my residence
- Low crime neighborhood.
- Zoned for good schools.
- Zillow and comparable houses needed agree on the value of the home*.
- Best-case estimated profit needs to be at least $15,000.
- Must be able to be sold quickly at a higher value
- No condos (typically have high Homeowners Association fees and renting restrictions)
The house I am buying meets most of the criteria, although its location is about 30 minutes away one direction. As a developer that sells his time, I am not excited about having to drive that on a weekly (daily?!) basis, but I plan on outsourcing as much of the property management that I can.
Once the repairs are finished on the property, I want to sell this property as soon as I can, because I don’t have time to manage renters or property repairs. While I already have interest from one person to rent from the house,
Hopefully this will be a profitable endeavor, but it could just end up being an expensive learning experience.
- While I agree that Zillow doesn’t know what it is talking about when it comes to home values. I also think that the people buying the homes would not want to purchase a house too far off the price listed online. The house I bought Zillow thinks is worth $115k and I purchased it for $47k.