As a fix-and-flip, local comparable sales support an After Repair Value (ARV) of approximately $190,000. The freshly rehabbed properties have been selling between $180-$190/Sq. Ft. Which puts this unit at above $190k in resale after renovations. The case study example for this is the top comp below. 2097 Montreat Cir. It's the exact same 2/2 style unit with the same sq. footage. It was a flip that was picked up in March for $130k, cosmetic work was done to it (floors, paint, kitchen, bathroom touch up, etc.) and sold for $197k on market in June. It went pending within 7 days.
The other sales that fell below for 2/2s had old hardwood flooring, outdated bathrooms, outdated kitchens, and they typically sold in the 160-165 range.
This will be a solid quick flip, no major structural, hvac work, etc. should be needed with a projected 38-42k$ in profit. This unit just needs cosmetic work (flooring, paint, kitchen work, and bathroom touch ups/new vanities). We estimated around $25k in rehab cost. At the current purchase price of $110,500 an investor would have approximately $135,000 invested in the project before financing, holding costs, and selling expenses. That creates a substantial equity spread between the total project cost and the projected $190,000 ARV, providing a healthy margin for investors who execute the renovation efficiently.
