New BRRR deal in Jacksonville, FL
We purchased a new BRRR property in early January, and I wanted to share the journey on this property to date. The house is a 2/1 block home in 32207 here in Jacksonville, FL that we purchased for $90k. The house was appealing to us because it's on the up and coming side of this neighborhood and it is still within the district for a highly desirable elementary school just a few blocks away.
The property needed a fairly standard list of renovations for these types of houses and our target budget was $35k. List of high-level renovations:
- Demolition
- Roof
- Re-pipe
- New kitchen cabinets & granite
- HVAC
- LVP flooring throughout
- Paint inside and out
- Bathroom updates, but not full replacement
- Minor electrical
The contractor that we’ve worked with for the last few years had moved on, so we started looking for a few new contractors who might be able to take on this project and potentially build a relationship for the future. While under contract on this house we brought a several contractors out, interviewed them, and talked about scope/budget.
We ended up going with @Mark Fries (HomeMax). It was our first time working with Mark and his crew, and immediately I was blown away with the speed at which they worked and the communication coming from Mark as they hit certain status milestones. The only hiccup in the process came with the cabinets and granite layout, but Mark helped work through that quickly and made sure we ended up with the right outcome. In exactly 30 days, the property was completely transformed, and based on our experience I will certainly be working with Mark on future projects.
We are now looking to place a tenant and plan to cash-out refinance in July. I will provide updates on this post when that happens so that anyone who is interested can see the final numbers regarding appraisal and rates. I expect roughly a $150k appraisal and $1,250 in rent. It’s not exactly a 1% deal or something we will get 100% of our cash out of, but we should be in a good equity position, cash flow about $250 a month after reserves, and there is likely good appreciation in the neighborhood as a bonus. I’ll take it.
