We just got house #35 under contract, and this is another house that was affected by the 2009 flooding here in Atlanta. It’s in the same neighborhood — and the exact same floor-plan — as The Flood House, and like The Flood House when we bought it, this one is currently torn down to the studs and needs complete rebuilding on the interior (actually, this one is more torn down on the interior)…
The comps in this neighborhood have dropped somewhat over the past 18 months since we purchased The Flood House, so I expect our profit on this one to be less than The Flood House, but we should be able to hit our minimum profit target ($15,000) and because the house is already completely demo’ed, it shouldn’t be too difficult of a rehab. The biggest risks are if we need any mold remediation (it doesn’t appear so, but without testing it’s difficult to tell) and whether the plumbing drain lines are clogged with dirt and can be easily blown out.
I’ve named this one The Rookie House, as “Rookie” is our dog and she’s had some health problems the past week. Hopefully the profit on this house will cover her vet bills over the next several months…though it may not… 🙂
We’re scheduled to close on this purchase at the beginning of July, will have to hold it for at least 3 months (Fannie Mae requires this when you buy an REO from them) and will probably put about $40,000 and 6 weeks into the rehab. I’ll post more renovation details and pictures in the next week or two.