Welcome to the ultimate guide to flipping houses in Buckhead, a resource created to empower budding real estate investors or experienced flippers seeking to tap into the potential of Buckhead's real estate market. In recent years, the house-flipping market has seen a significant upswing. From 2020 to 2022, the volume of houses flipped
increased by 58%. This rising trend points to a ripe opportunity in Buckhead, a premier neighborhood in Atlanta. Read on to learn more about what it takes to flip houses in Buckhead.
Why buyers love Buckhead
There are many reasons why Buckhead is considered a luxury homebuyer’s paradise. It comprises over 40 residential neighborhoods, each with a signature style. Buyers can shop from an array of luxury homes, including mansions and historic properties dating back over a century. Residences on the market include Colonial manors, Tudor revivals, and Victorians. These architectural gems are often situated on large estates, within gated communities, and along the area’s peaceful creeks and rivers.
In addition to luxury real estate, Buckhead is renowned for beautiful tree-lined streets, excellent schools, and plenty of fine dining. Locals love the parks and green spaces which abound in Buckhead. The region also has a strong economy bolstered by the presence of several Fortune 500 companies. Buckhead’s robust healthcare and tech sectors create a surplus of jobs and make the region one of Atlanta’s most magnetic commercial areas.
Buckhead’s housing market
With so much to recommend it and a relatively surplus of historic homes, Buckhead would seem to be a prime candidate for house flips. Single-family homes in Buckhead have seen a modest uptick in sales prices, whereas the market has been stagnant lately. Even as homes linger on the market, buyers are still drawn to Buckhead for its outdoor areas, shopping, and historical attractions. If you believe market activity will gradually increase, it could be the ideal time for a house flip.
How to find a house to flip
Before you start flipping houses, it is essential to do your research and understand your local community. This includes knowing which neighborhoods are considered “hot” and are likely to attract eager buyers. A local agent like Will Letton can inform you where to look in Buckhead. Crucially, the house’s location is a leading factor in determining what buyers consider it.
A trusted local real estate agent can significantly enhance your search for houses to flip. They can help you find properties that meet your criteria, research the history and condition of each property, and accurately estimate its potential value. They can also help you contact the owner directly to inquire about their interest in selling — in most cases, you can contact the owner directly to ascertain their interest in selling.
Breaking down the costs of house flips by project
Understanding the cost breakdown is essential to plan your house-flipping venture efficiently. The following is intended as a starter’s guide to the components of a house flip.
Bathroom renovations are a popular and profitable way to increase the value of a luxury home. The average cost of a bathroom renovation is around $15,000, but this can vary depending on the size and scope of the project. When choosing upgrades, consider the style and needs of the target buyer. Most buyers love new cabinets and countertops, pantries with built-in shelving, and new light fixtures.
Kitchens are essential for homes, and a well-renovated kitchen can be a major selling point. However, kitchen renovations can be expensive and time-consuming, so plan carefully before starting a project. When choosing upgrades for your kitchen, consider the style and needs of your target buyer. For example, families with young children may appreciate a kitchen island with seating, while empty nesters may prefer updated appliances and countertops. Most buyers love new cabinets and countertops, pantries with built-in shelving, and new light fixtures.
The interior design of Malibu luxury homes varies as much as the neighborhood's market. In the highly competitive Malibu luxury homes market, you will find different styles of homes calling for different interior design choices. For example, new flooring can cost well over $10,000, depending on the type of flooring and the size of the home. Hardwood floors are typically more expensive than carpet but have a higher ROI.
Curb appeal and outdoor space are essential for selling a luxury home. Ensure your home looks its best by trimming hedges, cleaning flower beds, and painting the house or front door. Add flower pots, a welcome mat, and splashes of color to attract buyers. In the backyard, create a usable space for people to relax and enjoy. Consider adding a deck, firepit, or additional seating. Use lighting to add ambiance and highlight the area. If you have a pool, add an outdoor shower. These two factors can change the perception of your house flip, making a big difference in its sale.
Flipping houses is a business strategy that demands skill, timing, and a deep understanding of the local real estate market. While every house flip differs, the following advice applies to virtually all house-flipping projects.
Make a budget
When budgeting for home renovations, it is better to overestimate the costs than to underestimate them. This is because there are often hidden costs that can add up quickly. For example, you may need to replace the central air system, purchase additional materials, or hire more labor than anticipated. By overestimating your budget, you will be less likely to run out of money in the middle of the project.
Know the 70% rule
This rule states that you should spend no more than 70% of a home's after-repair value (ARV) minus the cost of repairs. For example, if a home's ARV is $100,000 and repairs cost $20,000, you should spend no more than $50,000 on the property. This will leave you with a profit of $30,000 when you sell the property. This rule of thumb will help you ensure that you profit from the property when you sell it.
About Will Letton
A powerhouse in Atlanta real estate, Will Letton
is a top-tier performer at Atlanta Fine Homes Sotheby's International Realty. He upholds the highest ethical standards and uses cutting-edge technology for Buckhead-area buyers and sellers. Will has set records in many neighborhoods and buildings throughout Atlanta, and his dedication to his clients has earned him recognition as a top agent in 2020, 2021, 2022, and 2023.
If you want to buy or sell a home or have questions about the Buckhead real estate market, contact Will Letton