So You Want to Flip Homes in Atlanta: The Do’s and Don’ts

Enticed by the drama and dollars of popular DIY TV shows such as Flip or Flop and Brother vs. Brother, more folks than ever hope to get in on the action of flipping homes.

But before you take the plunge, here are the do’s and don’ts of how to flip homes in Atlanta.

The 5 Do’s of Flipping Homes in Atlanta

Number 1: Study the Local Real Estate Market

This is number one for many reasons. First, without an understanding of market trends, you simply cannot make an informed decision when buying properties. You will either overpay for the property on the front end, or be stuck with an overpriced property on the back end.

Second, while studying the local real estate market for at least a year, you will be able to identify your target area. Choose a neighborhood or subdivision where you will focus your attention, track the market, and build your reputation.

Number 2: Become a DIY Master in One Thing

While the Scott brothers of Brother vs. Brother may be the dynamic duo of do-it-yourself, it doesn’t mean you have to be in order to successfully flip homes in Atlanta. However, it is very useful — and economical — in the long run to become a DIY Master in at least one area of home improvement.

Perhaps you enjoy tearing out spaces, installing light fixtures, or drawing kitchen plans. Whatever it is, the more home improvement you can do yourself — and do well — the more you will save on costs down the road.

Number 3: Count the Costs

Familiarize yourself with the costs of basic home improvement projects, including supplies and labor. For basic flips, you’ll need to know the costs associated with installing new flooring, painting, carpet cleaning, and small demo jobs, just to name a few.

Counting the costs on the front end will help you make informed cost estimates when considering which project to take on.

Number 4: Build Your Brand

Now that you have made the decision to flip homes in Atlanta, it’s time to start thinking about your brand. Entering into the sometimes crowded field of flippers means being able to carve out a space that is uniquely your own.

Don’t just churn out another version of someone else’s bland style. Have a sense of what will make your flips stand out to potential buyers. 

Number 5: Know Your Number

This do is number five only because it is logically the last decision you will make before taking on your first flip — but it ought to be number one in your mind. You must know your “number,” aka the bottom-dollar figure representing the absolute minimum profit you are willing to make on a job.

If you don’t weigh this number carefully, your entire project could become a financial drain that never pays off. Commit to yourself (and to your partners, if you have any) that you will never take on a project that may jeopardize your ability to meet or exceed that amount.

The 5 Don’ts of Flipping Homes in Atlanta

Number 1: Don’t Look Outside Your Target Area

Just don’t. If you are taking ‘do’ number one seriously, then you have spent way too much time and energy learning about your target area to gamble with your investment dollars now. It doesn’t matter if the property was recommended by your favorite uncle, or if you stumbled upon it on a random trip across town. If it is not located in your target area, walk away.

Of course, this doesn’t mean you can’t one day expand your target area. After all, there may be some gems you have yet to discover. But buying a property in an area you have not studied thoroughly is too risky in the early days of your career.

Number 2: Don’t Start Off with a Big Project

While that mansion may have dollar signs written all over it, it is also wrapped in caution tape.

Taking on a big project the first time in the ring will likely cost you more time, effort, and money than taking on a smaller, more manageable property. Sure, the profit margin may not be as big, but the hurdles and headaches between day one and the final sale won’t be as big either.

Number 3: Don’t Go in Blind

Now that you’ve identified some potential properties, it’s important to do your due diligence. First, visit the property. That may sound obvious, but people are sometimes tempted to buy a house off the internet, sight unseen.

Walk the house and take a thorough inventory of all the necessary fixes and potential upgrades. Don’t settle for just the seller’s report; Have a trusted inspector do the buyer’s inspection. And run the comparables, or comps, for the area over the past 30, 60, and 90 days so you have that information front-of-mind as you make your final decision.

Number 4: Don’t Cut Corners

Once you’ve secured the property, it’s time to commit to a project scope that maximizes your profit without compromising your brand. Cutting corners, using cheap materials, or hiring cut-rate subcontractors will come back to bite you. So just don’t do it.

Home buyer’s won’t be fooled by cheap finishes or hasty repairs. Don’t rush and take pride in quality workmanship, and it will pay off in the end.

Number 5: Don’t Be Afraid to Rent

Here’s the honest truth: Flipping homes in Atlanta is hard. A recent survey put the Big Peach near the bottom of the list of US cities for flipping. So even if you’ve followed every do and don’t of this list, you may be faced with the decision to hold on to a property in hopes of selling at a better price down the road. When you are in this position, don’t be afraid to rent and try again when the market warms up.

Show Buyers a Spic and Span Home

Once you’ve completed your flip, let our expert cleaners remove the dust and allergens that every home improvement project leaves behind. Contact Lily’s Cleaning Service to schedule your post-construction cleanup. We will get your home spic and span and ready for showing.