Potential BRRRR Deal in Jacksonville

Potential BRRRR Deal in Jacksonville

Member since 2020 · 13 posts · 3 votes

Hey Everyone, I am new to real estate investing and looking to close my first BRRRR deal. I found a property in Jacksonville FL, ask is $57k, the owners are flippers in the area that rehabbed most the property, but found better deals and want to sell to fund their new deal.

They just added a brand new roof and said they have a 15 year warranty from the materials company. From the pictures and what they told me the property still needs some work, minor plumbing, a new toilet, flooring/carpet (only about half the house) and to replace a 1 or 2 windows. They said it should be about $10k (still doing my own research to verify that, seems little low). 


Rent in the area is about 695-800 according to the rental property analyzer on Biggerpockets, so RTP ratio is just above 1%, i am looking at about $230/month in cashflow, and RTI ratio in Jacksonville is about 27% so still room for growth. 2 homes in the area sold for $103k and $108k (both within the last 6 month, and the property that sold for 103K is on the same block, 3 houses down), the property located near a very good high school and Elementary (both 5 stars according to google, lol). So all the indicators are telling me this is a good deal, but as i said it is my first deal so im a little nervous, i am also thinking about flipping the property as the comps seems to support it. But I'm 26 looking to quit my job and retire in the next 3-5 years so cashflow is more enticing to me right now. I just want to get some feedback on what you guys think, what i should be looking out for? What i might be missing? Or what I am doing right, (thats always encouraging). The X factor is I am from Brooklyn, NY so i would be out of state investing. But any advice would be super helpful, as well as any info for good contractors/property managers in the area.

Thanks everyone

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Real Estate Agent · Jacksonville, FL · Member since 2019 · 75 posts · 43 votes
5y

@Andre Walker hi Andre, I’m also from Brooklyn and have two SFHs (3/2s), a duplex, and a 20-unit in JAX. The key thing is the zip code. I can’t tell from your info if the deal is good without knowing the location. Share the zip and I’ll give you more of my impressions. Feel free to share here or message me if you’d like more privacy. My general impression is double the rehab number they gave you and make sure your comps are accurate, same number of bed/bath, similar square footage, etc. If the numbers still work, go for it. My worry is you’re paying them for their unfinished business.

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  • Real Estate Agent · Jacksonville, FL · Member since 2019 · 75 posts · 43 votes
    5y

    @Andre Walker hi Andre, I’m also from Brooklyn and have two SFHs (3/2s), a duplex, and a 20-unit in JAX. The key thing is the zip code. I can’t tell from your info if the deal is good without knowing the location. Share the zip and I’ll give you more of my impressions. Feel free to share here or message me if you’d like more privacy. My general impression is double the rehab number they gave you and make sure your comps are accurate, same number of bed/bath, similar square footage, etc. If the numbers still work, go for it. My worry is you’re paying them for their unfinished business.

  • Member since 2018 · 14 posts · 8 votes
    5y

    Make sure you get an inspection. 

  • Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    Personally I would not have my first place out of state 

    But others do I think 

  • Real Estate Investor · Brooklyn, NY · Member since 2017 · 65 posts · 39 votes
    5y

    @Andre Walker

    I’m from Brooklyn NY too and own properties in 5 different states. The key is build a local team that you trust. Think about all the old friends and colleagues you’ve had over the years who have moved to different places and link up! I’m actually going to start looking into Jacksonville myself soon.

  • Member since 2020 · 13 posts · 3 votes
    5y

    Thanks everyone for your feed, 

    Ralph the zip code is 32254, let's connect, I'd love to know how you got started, and what your journey has been like thus far. What part of Brooklyn you invest in? I know a nice up coming area as you can look into, let me know if you are interested.

    I will definitely get an inspection, and double check the rehab and comps. 

    I would ideally like to get started locally but real estate in Brooklyn is a little out of my price range at the moment Michael. However, I have read David Green's Long Distance Real Estate Investing book throughly, which is motivating me to jump in. 

  • Member since 2020 · 13 posts · 3 votes
    5y

    @Tony Gorokhovsky Thanks, that's a great idea! Are you apart of any Real estate investing groups in Brooklyn? Definitely looking to network a little more. Message me.

  • Real Estate Agent · Jacksonville, FL · Member since 2019 · 75 posts · 43 votes
    5y

    @Andre Walker that’s not a bad zip code at all. My advice is to be diligent about your comps and rehab costs, be cautious to a point, and then just jump in. I think of your first deal this way: you’re being paid for your education. Real estate can be pretty forgiving, even if your rehab costs more than you think. Just make sure that if things go wring it doesn’t end your career. I’ve bought places where the scope of work increases as we open the place up. That means the cost of rehab goes up. We recently went to do some plumbing and found pipes not tied into anything. That mean we had to run them and spend an extra 1500.

    Where in Brooklyn do you suggest investing? I don’t have any investments here. I always get outbid.

  • Member since 2020 · 13 posts · 3 votes
    5y

    @Ralph Chiaia that's great advice, i really appreciate it. Have you looked in Sunset park? That neighborhood is on the rise, especially as industry city continues to grow. 

  • Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes
    5y

    @Andre Walker My advice about Paxon/Lackawana (32254) is to drive the area, what looks great on one street looks like a warzone on the next. It has pockets, but your 1st time home buyer will drive the area too and if it scares them.......The Median Income in the zip code is only about $30k, go south of I-10 and its $41k, and 32210 is up to $45k. Dollar for dollar, I would look for a stronger zip code than 54. I'd really be careful with the same investment $$$ you could invest in Brooklyn or Murray Hill. 

  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y

    I have 7 units in Jacksonville FL zip code 32254.

    There are areas where things are rough and areas where it is okay.

    It is really hard to determine if $57,000 is a good price or if you are overpaying.

    If you never been to Jacksonville, I would suggest spending $500 on a round-trip flight and hotel for 3-4 days to explore the city.

  • Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
    5y

    @Andre Walker

    Sounds like you need some boots on the ground. I am local, reach out if you need me to look at a few properties and give some perspective/advice. Thx!

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