How much of a live-in flip's gain came from the renovation and how much came from the market

Question

Here is a case worth studying. A live-in flip bought in decatur, ga in october 2022 for $238k, $61k of renovation over about 20 months, sold in june 2024 for $329k. Gross gain $91k. Take the $61k back out and the renovation contributed maybe $30k of it, with the other $60k or so coming from the market doing what it was going to do anyway. The control sits on the same street. A neighbor who did nothing sold a month later for $305k with zero renovation cost. Fewer dollars cleared, better net per month held. The interesting question is whether cosmetics only and a sale at month 24 would have beaten the full job. The kitchen and the back bathroom were $38k of the $61k, and in that zip code a deep clean and a coat of paint may have carried nearly the same weight. The appraiser took no positive comp adjustment for the kitchen at all. Does anyone actually track what share of the final number came from the market versus the work, or does most of this business look at the spread and call it a win?

harriet_boone · Answer

What did comparable unrenovated homes in that zip actually appraise for against yours?

priya_n21 · Answer

Your appraiser not flagging the kitchen tells you most of what you need to know. The missing number is your carrying cost per month. What was it, set against your neighbor's zero?

hannah_west29 · Answer

That $38k on two rooms in Decatur 30032 runs closer to $52k right now, with subs backed up four to six months.

How much of a live-in flip's gain came from the renovation and how much came from the market

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