Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
In 2012 I invested in a foreclosure condo that needed a little bit of work (Under $6k.)
I initially did around $2k of work on it to get it to a livable state. I rented it for 2 years to students as it was near UNF campus.
Just after the 2 year mark, I had students that were graduating and moving away, at this point I did some market research and decided to sell the condo.
My main motivation for listing the condo was that it was the only one for sale in the development. I put $4k of upgrades into the place then listed it.
Within 24 hours I had more than 6 offers and 3 of which were cash offers that were for more than my asking price. (This turned into a bidding war.)
In the end I ended up making around 40% more than my initial investment.
Windermere, FL · Member since 2015 · 43 posts · 24 votes
10y
Great job Alex. Very wise of you to list while there was little to no other competition. Especially where there was surely demand (college town). Congrats!
Will you be trying to replicate the same thing in the future?
I will be doing this again in the near future. I invested heavily into aerospace right before the sale of this condo; my time in aviation is almost finished! I will be coming back to real estate as an investor, this time working with more cash in hand.
Jacksonville is a good and affordable market! GOOD FOR YOU! Stay inspired and motivated! Thank You for sharing! What is your next investment prospect?
I'm in the process of learning my strategy and what will work for me in RE; I'm learning a lot in this first quarter of the year, so I am not certain where I will end up in the 2nd quarter yet! But I am getting closer.
New York City, NY · Member since 2015 · 37 posts · 7 votes
10y
Great job keeping tabs on your market and what was going on around your property. I'm learning that so much valuable info about how to tend your investment can be gained by just looking at what's going on in your neighborhood!
How did you like having students as tenants? I myself am viewing a property this week with student tenants in northeastern PA.
Great job keeping tabs on your market and what was going on around your property. I'm learning that so much valuable info about how to tend your investment can be gained by just looking at what's going on in your neighborhood!
How did you like having students as tenants? I myself am viewing a property this week with student tenants in northeastern PA.
Hey Robert, I didn't mind having students as tenants at all! I had a previous rental unit that I had student in that I did not properly interview. He ended up being a bit of a party guy and trashed the place over a 1 year period of time, he didn't get his deposit back.
However, in this unit that this topic is about, I ended up interviewing the girls that were going to live in the unit, they were VERY busy students and didn't have time for much else. Great renters!
New York City, NY · Member since 2015 · 37 posts · 7 votes
10y
@Alex Sanfilippo Yes I think interviewing your tenants is really important. The area I'm looking to buy in has guaranteed student tenants and they do destroy stuff but from the landlord I recently spoke to, it's worth the cosmetic+ damages because you never have months with no tenants and either parents or student loans can cover rent.
Did you hire a property manager or did you handle everything yourself? If so, was it manageable?
Although you made an awesome profit on the sale, do you think in the long run it would be worth it to hold on to a property like that with such returns and make rent plus appreciation?
Thanks for sharing your success...I hope to skip the beginner mistakes by asking tons of questions and good luck on your next investment. Are you gona try for another property by the UNF campus?
Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
10y
@Robert Niosi, Because it was my only rental property at the time, I managed it myself. I used a basic rental agreement form and they just had to have a check to my before the 7th of each month.
It may have been worth it to hold on to it longer; however, at the time I was in another investment / much large in the aviation industry so the money was needed at that point.
I'm a beginner myself! That is why I am here, trying to learn all that I can. Once I figure out my REI strategy, I'll decide if I want to go near campuses again or not... We will see!
I think my focus moving forward is going to be SFH; HOA's in condo's can be strict and change rules a lot, so it's a bit higher risk. I'm still in the process of writing my REI strategy, so we'll see what happens!