Flipping Houses in Georgia: An Ultimate Guide for 2022

If you are looking for a comprehensive guide to start flipping houses in the state of Georgia, you’ve come to the right place.

Flipping houses is one of the simplest methods to get started investing in real estate. It might be a lucrative business enterprise. However, because it is a high-risk investment, you must take into account a number of factors.

But have no fear, I’m here to help you with your studies and decisions. This detailed guide breaks down market research, assessment, and technique for flipping properties in Georgia.

Flipping Houses in Georgia

Georgia has one of the hottest housing markets in the country. For house flippers, it’s a once-in-a-lifetime opportunity to make money. Despite the low property market valuation, investors who choose the appropriate properties and flip houses in Georgia win handsomely.

Houses in Georgia are no exception to the rule that every investment, including real estate, is very niche and local area dependent. Paying attention to current market events and learning how to react swiftly can help you figure out whether you made a profit or a loss. To grasp the trends in these local markets and locate investment opportunities, you should always deal with a local specialized real estate agent. Their in-depth knowledge of the ins and outs of these specific property markets may help you at every stage.

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Analyzing the Georgia Housing Market in 2022

Georgia is the 21st most affordable housing market in the US. Georgia’s average house value is $306,113 as of April 2022, which is just below the national average home value of $344,000. Furthermore, house values in Georgia climbed by a little more than 9.56 percent in 2021, and are expected to rise by a stunning 27.7% in 2022. These prices, on the other hand, vary even within the state, indicating how regional and localized property markets are.

Georgia’s property market trend has attracted real estate investors from all across the country. Residences in Georgia are in more demand than they are available. This has resulted in a strong seller’s market in Georgia’s housing market. It’s easy to see why investors are flocking to the real estate market in Georgia. The rising population and improved employment and education sectors are two of the most important drivers of progress. Georgia has an 88% high school graduation rate and a $54,000 median household income.

Georgia has rebounded with a net gain of over 678,000 jobs since the start of the pandemic, which resulted in the loss of 609,000 non-agriculture jobs from February to April 2020, led by job growth in the hospitality, professional and business services, trade, and transportation, and private education and health industries. This is a 109% increase in employment since April 2020, indicating that the economy is still recovering. While there are encouraging signals, Georgia is still approximately 87,000 jobs short of where it would be if the COVID epidemic had never happened.

Furthermore, Georgia’s low-cost housing market makes properties more accessible to first-time homebuyers and investors. You’ll need less money to get started, which means there will be more novice investors and, as a result, more competition in the future.

How to know if the house in Georgia is a good investment?

After studying Georgia’s housing market and economy in general, you’ll most likely want to look into a more specific area and neighborhood to find possible homes. Keep in mind that not every local real estate market has the same kind of investment opportunities.

In general, a variety of factors go into assessing whether or not a property is a good investment. When you’re just getting started, avoid local marketplaces with a lot of inventory and postings that have been active for a long time. Houses in Augusta, Georgia, sell after an average of 35 days on the market. This means that if the property in the zone is still operational after 35-45 days, it is a no-go.

If the price of a property in Georgia is less than the local market average, it is another sign that it is a good investment. Looking for houses that are significantly less costly than past sales in the region is one of the simplest ways to detect potential value. Remember that the less expensive homes will require significantly more changes than the more expensive ones.

How much should I pay for a house in Georgia?

It’s usually a good idea to stick to the 70% rule when deciding how much to spend on a home in Georgia. According to this rule, you should never spend more than 70% of the house’s after-repair value, less repair and renovation expenses. Let’s say you buy a house in Georgia and want to spend $30,000 on repairs and remodeling. Keep in mind that upgrades raise the property’s market value. Let’s say your house is worth $400,000 after repairs.

According to the 70 percent rule, you shouldn’t have spent more than 70% of the after-repair value minus repair expenditures on this property. When you add up the numbers, it only amounts to $250,000.

It’s critical to keep in mind that the 70% rule is discretionary. It’s only an estimate of the house’s genuine worth. This rule aims to create a profit margin that is substantial enough to pay all other costs while flipping houses in Georgia while still leaving you with a good profit margin.

Do you need a real estate license to flip houses in Georgia?

In Georgia, you don’t need a real estate license to flip properties. Getting both a realtor and a contractor’s license is typically a smart idea if you want to start flipping houses in Georgia full-time.

It’s OK if you don’t want to cope with the difficulties of obtaining a real estate or contractor’s license in Georgia. In this case, I strongly suggest you deal with a seasoned realtor and contractor with whom you can build a good working relationship.

Finally, locating a reliable contractor or repairman might be difficult if you are new to Georgia. In addition, zoning regulations and requirements differ by city, and market trends change often. Working with a reputable agent or contractor might help you anticipate issues.

How to start flipping houses in Georgia and make a profit?

Once you’ve done extensive research on the Georgia property market and are certain that the house is a sound investment, you’re ready to start your home-flipping journey in Georgia. To start flipping houses in Georgia and profit handsomely from this sort of real estate investing, follow these six steps.

1. Create a Budget and Secure Financing

The first thing to consider when flipping properties in Georgia is your financial situation. Before looking at potential qualities, it’s typically a good idea to perform the math.

You should already know how much money you have if you have cash on hand. You may avoid financing charges, mortgage payments, and any other closing expenses or fees by paying cash for your Georgia house flips. As a result, if you’re flipping properties in Georgia and have cash on hand, you should always use it.

Taking out a loan or other forms of financing to buy and remodel a property might significantly affect your earnings. If you took out a $400,000 loan to buy a house in Georgia, you’ll keep paying mortgage payments until the home is sold. Even with a 10% down payment, a home might cost upwards of $40,000, to begin with. You’ll need to spend an extra $5,000 on top of the $20,000 for repairs and improvements.

Repairs and upgrades, unfortunately, take time. As a result, you may wind up paying your mortgage for a longer period of time, perhaps reducing your profit margin. Furthermore, after accounting for property taxes, building permits, utilities, marketing costs, closing fees, house insurance, broker commissions, and other expenses connected with flipping homes in Georgia, you may not be able to make any money.

As a consequence, having cash may help you save money on all of these things while also allowing you to keep as much of your earnings as possible.

But don’t worry if you don’t have any cash on hand. There are still a few more options for sustaining your house-flipping business on a tight budget.

2. Research the Cities and Neighborhoods

After you’ve found the houses that are listed below market value and taken into consideration other factors such as active days on the market, you can assess the neighborhood’s attractiveness. When it comes to house flipping in Georgia, the quality of the neighborhood is crucial. Other quantitative variables such as the quality of education, entertainment, parks and recreation, and the shopping experience in the region should be evaluated in addition to the listing and sale price.

Existing housing stock in Georgia’s older towns, as well as a rapidly growing metropolitan zone, may benefit from restoration and renovation. In Georgia, you may make a nice living by flipping houses. You must, however, learn to discern appropriate alternatives.

Here is a list of the 4 best cities to flip houses in Georgia for 2022.

Flipping Houses in Augusta, GA

Augusta is the biggest city in the state of Georgia. This city is composed of 49 neighborhoods and offers multiple affordable duplexes, townhouses, and multi-family homes. As of April 2022, the median listing price for houses in Augusta was just $215,000, trending up 26.5% year-over-year. The median listing price per square foot is $124. The median sold price for a house was $195,300. Furthermore, on average, houses in Augusta sell after 41 days on the market.

The sale-to-list ratio of houses in Augusta, GA is 100%, which confirms the strong seller’s market.

The city offers 68 public schools rated good or higher by GreatSchools and 21 private and charter schools. Augusta also offers hundreds of grocery stores, restaurants, and cafes. There is also a plethora of beautiful parks and gyms for a healthier lifestyle.

Out of the 49 neighborhoods in Augusta, Summerville is the most expensive one, with a median home price of $329,000. On the other hand, Richmond Hill is the most affordable neighborhood, with a median listing home price of just around $124,500. There are also some other great neighborhoods, like Belair, Jamestown, and Lake Aumond.

Flipping Houses in Atlanta, GA

Atlanta is the capital city of Georgia. It is composed of 205 neighborhoods and offers multiple affordable duplexes, townhouses, and affordable multi-family homes. As of April 2022, the median listing price for houses in Atlanta was $412,000, trending up 5.9% year-over-year. The median listing price per square foot is $265. The median sold price for a house was $410,000. Furthermore, on average, houses in Atlanta sell after 37 days on the market.

The sale-to-list ratio of houses in Atlanta, GA is 101.07%, which confirms the strong seller’s market.

The city offers 128 public schools rated good or higher by GreatSchools and 54 private and charter schools. Atlanta also offers hundreds of grocery stores, restaurants, and cafes. There is also a plethora of beautiful parks and gyms for a healthier lifestyle.

Out of the 205 neighborhoods in Atlanta, Morningside-Lenox Park is the most expensive one, with a median home price of $975,000. Conversely, Centennial Hill is the most affordable neighborhood, with a median listing home price of just around $280,000. There are also some other great neighborhoods, like Midtown, North Buckhead, and Pine Hills.

Flipping Houses in Columbus, GA

Columbus is a city in Georgia that consists of 31 neighborhoods and offers multiple affordable duplexes, townhouses, and multi-family homes. As of April 2022, the median listing price for houses in Columbus was $185,000, trending up 9.5% year-over-year. The median listing price per square foot is $112. The median sold price for a house was $156,500. Furthermore, on average, houses in Columbus sell after 56 days on the market.

The sale-to-list ratio of houses in Columbus, GA is 100%, which confirms the strong seller’s market.

The city offers 62 public schools rated good or higher by GreatSchools and 22 private and charter schools. Columbus also offers hundreds of grocery stores, restaurants, and cafes. There is also a plethora of beautiful parks and gyms for a healthier lifestyle.

Of the 31 neighborhoods in Columbus, Green Island Hills is the most expensive, with a median home price of $575,000. On the other hand, Willet is the most affordable neighborhood, with a median listing home price of just around $34,000. There are also some other great neighborhoods, like Downtown Columbus, East Wynnton, and North Highland.

Flipping Houses in Macon, GA

Macon is a city in Georgia and is composed of 13 neighborhoods. It offers multiple affordable duplexes, townhouses, and multi-family homes. As of April 2022, the median listing home price in Macon was $175,000, trending up 3% year-over-year. The median listing price per square foot is $103. The median sold price for a house was $181,000. Furthermore, on average, houses in Macon sell after 46 days on the market.

The sale-to-list ratio of houses in Macon, GA is 100%, which confirms the strong seller’s market.

The city offers 47 public schools rated good or higher by GreatSchools and 20 private and charter schools. Macon also offers hundreds of grocery stores, restaurants, and cafes. There is also a plethora of beautiful parks and gyms for a healthier lifestyle.

Out of the 13 neighborhoods in Macon, Downtown Macon is the most expensive one, with a median home price of $425,000. On the other hand, Fort Hill Historic District is the most affordable neighborhood, with a median listing home price of just around $20,500. There are also some other great neighborhoods like the Vineville Historic District, Napier Heights Historic District, and Pleasant Hill Historic District.

3. Assemble your team

You’ll need a team to make each flip a success, whether you’re flipping houses full-time or part-time in Georgia. A real estate lawyer, a lender, a real estate agent, a general contractor, a few workers, and an accountant will almost certainly be required.

Working with a trusted team rather than a fresh specialist for each assignment is also a smart option if you want to make house flipping a regular element of your investing plan.

4. Select and Purchase your Georgia House

It’s finally time to buy your Georgia house after you’ve sorted out your finances and determined whether or not it’s a smart investment. Another consideration when buying a property is that houses that require more upkeep and maintenance are often less expensive to buy. As a result, it will take longer to resell them.

On the other hand, houses in good shape that do not require large repairs and changes are significantly more expensive. You will save a lot of money in the long run if you invest more money upfront, and you will not have to worry about house renovations.

As a consequence, try to find a balance between these issues when looking for a property in Georgia. Choose a home that meets your requirements, budget, and timetable.

5. Repair and Renovate the House

Take into account the expense of repairs and enhancements, as well as the time required to accomplish them. Determine which upgrades will add the most value and if they will appeal to potential buyers. Adding air conditioning and energy-efficient modifications to a home may quickly increase its value for homeowners who want to avoid the hot and humid Georgia summers or harsh Georgia winters.

Furthermore, power washing the exterior of the property, painting the inside, replacing a leaking faucet, reglazing and caulking bathtubs, and cleaning the floors are all small but vital jobs that will aid in selling your house quicker in Georgia.

6. Resell the Renovated Georgia House for a Profit

It’s time to re-list the property after you’ve finished fixing and restoring it. You have two options for reselling your home in Georgia. The first choice is to sell as a for-sale-by-owner (FSBO), while the second is to sell through a real estate agency.

The cost savings on commissions is one of the numerous advantages of selling your home without the help of a real estate agent. You must pay a fee to the buyer’s agent even if you sell your Georgia house on your own (3 percent ). You’ll need to be ready to bargain like a pro and fill out all of the paperwork correctly if you want to sell your property swiftly.

If you don’t want to deal with the hassles of selling your home alone, you may always hire a professional real estate agent. Contract creation, deliberation, signing, and closure will all be expedited. However, you will be obligated to pay them a fee of 3% for their services.

How much money do house flippers make in Georgia?

The average income per flip in the United States is $60,000, whereas it’s only around $80,000 in Georgia. As a result, the average revenue per flip in Georgia is $20,000 greater than the national average. To put it another way, it makes sense. Affordable housing and a rising standard of living in this state attract a large number of real estate investors, resulting in increased resale value per flip.

It’s also worth noting that revenue per flip isn’t the same thing as net profit. You’ll need money for repairs and restorations as well. Depending on the existing status of the property, a variety of repairs may be required. The home will be worth it if you invest $30,000 in repairs. After eliminating all additional fees and levies, you’ll have a net profit of $25,000 to $30,000 to deal with.

As a result, it’s normal to expect to make at least $25,000 from flipping a single house in Georgia. Furthermore, the typical real estate investor flips 4-5 houses each year in Georgia. That means you can expect to make around $125,000 per year if you flip houses full-time in Georgia.

Final Thoughts

Overall, flipping houses in Georgia is an excellent way to begin investing in real estate. Georgia is fast expanding and has a lot to offer real estate investors. It is one of the most profitable states for flipping houses. Moreover, discovering lucrative flips in the Peach State necessitates a mix of your skills, knowledge, and luck. If you locate a good deal on a house in Georgia, make sure you plan ahead, remodel the property if required, and sell it to a high-end buyer.