New BRRR deal in Jacksonville, FL

15 Replies

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. 

Looks great! I'm hopefully closing on my first Duplex in the 32244 area in the next few weeks. I may be in the market for a contractor later down the road if I run into things that are above my Skillset (My skillset is minimal lol). So that praise on someone local that I may possibly reach out to later is an asset to me and is much appreciated!

Looks great! I like the numbers too, for this market! Came real close to pulling trigger in 07! but went for 77 instead in the end haha...I wanted to have the first one as a rental, but I think flipping just makes sense from just having to pay for materials. Hoping to get into the westside and selective areas in the northside this year. 

Originally posted by @Wesley I. :

@Kyle Jensen

Looks great! How did you source the deal? Direct mail? Cold call?

This one was on the MLS actually. It took a while to close though because it was going through probate as well.

Rental market is hot. 6 days from posting the listing to having a signed lease in hand. Well qualified tenant and $1325 in rent. Always nice when you beat your projections! 

Nice @Kyle Jensen ! I think similarly - I'm in the market for my first investment property and am not necessarily shooting for the stars or a deal where I pull every penny out of it after refi - I think there is great value to the investment and money you'll leave inthe deal considering the appreciation that you're going to see. I also appreciate your conservative estimates - I tend to do all my numbers in "worst case" scenarios and only if they still look good will I consider moving forward. 

Congrats!

Originally posted by @Carrick Young :

@Kyle Jensen great job!! Which portion of 32207 is the up and coming part? I've looked a couple properties here but haven't moved forward on any of them. 


 Hi Carrick - I’d say you want to pay close attention to the school districts and proximity to San Marco. Some parts will have prices of $300k and up and others just a few blocks away will be half of that. It can be street by street though and really pays to have someone familiar with those nuisances. If you have specific questions, feel free to send me a direct message. 

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