All Forum Posts by: Aaron Thivierge

 Hi, Jeff. Yessir. We met for coffee 4 years ago. I took a hiatus for a bit due to family growing, children, life, fishing, etc... Now, I have got my focus back.  Closing next week on this property. I got a text from the 3rd sibling last night.  He has all his ducks in a row ( he just got back from burying two relatives last week).  Very excited to see this deal come together.  I will update right after closing.   Thank you everyone.  Aaron 

 BRILLIANT! this is why I posted this opportunity here: to get this type of feedback ( and similar advice over the past 24 hours by the other contributors). Thank you. This makes perfect sense as my hearts desire IS to hold this property longterm.  

Brandon, would you share your insurance company or brokers contact with me?  The insurance quote I got was $1200/ year.  

I really like the idea of flipping this one for cash then buying 2 more in average neighborhoods to hold long term. 

I have a very good friend who just bought a bank. I met with him about this particular deal and others down the line. He has agreed to finance this property (and others that the numbers make sense) for 80% of LTV of ARV ( including purchase price and repairs) at 4% amortized over 20 years.

I also like the idea of doing a light rehab then renting it at fair market value and holding it long term. 

I will follow up with this thread once we close.  Thank you again for all the thoughtful ideas and contributions.  

Thanks all for the replys.  I will expound more later tonight.  The zip code is 32210, and the school is John Stockton Elementary School.  

Good afternoon. I've been a member for 4 years or so, but I got distracted for 3 of them.  Now, the fire is lit again, and I'm motivated. 

I have been in discussion with 3 owners of a single family home that has been a rental for 19 years.  The same tenant has been there for 19 years.  It's a 2 bedroom, 1 and 1/2 bath in a very good location in  Jacksonville, Florida. The home sits on a double lot with a massive yard in a very desirable A school district ( people literally buy homes in this area just to send their children to this particular school).  
2 of the 3 siblings have agreed to a purchase price of $60,000 and I cover all closing costs and do diligence money ( survey, title search/ insurance, real estate attorney, etc...).  The third sibling will most likely consent as well....he's been distracted burying his mother in law and settling her estate.  But, he is most likely on board as well.  

Here are the numbers:
After repair value:  $180,000
Purchase price :  $60,000
Repair costs:  $45,000
Fair market rent:  $1,100/ month
Current rent ( and has been since 1998) : $600

I have talked to the Tennant ( with permission from the three siblings/ owners) and his plan is to retire in September and move back to Ky.  So, I have options.  Do I :

A.) put the repair money into the home, flip it in this hot market and clear $65,000 after all expenses? I have an amazing contractor ( also a flipper and close personal friend whom I trust exclusively).  He walked the property with me and sent me a renovation proposal with a 2 month time frame start to finish.  

B.) Put $20,000 into a light rehab and rent it for $1,100 / month and hold it long term

Property taxes are $1100/ year
Insurance will be $1200/ year 

 My ultimate goal is to acquire buy and holds for long term wealth. 

This is a unique situation because the numbers make sense to flip it.  But, my desires are to add doors to my portfolio.  I am 41 years old and have a $400,000/ year salary currently, so I don't need the money immediately ( except to put back into acquiring more real estate).  

What would you do and why?  I appreciate your opinions.  

welcome! Also here in Jacksonville- post a photo of yourself to add credibility to your profile. Welcome and best wishes!

welcome to BP- post a picture of yourself in your profile- it adds credibility to your intentions. Best wishes- I'm also in jacksonville, Florida 

what Dana said: it's a no go for holding: if you can sell it, I sure would.  Your expenses on your current primary property are going to consume any cash-flow of the monthly rent, especially over time.  

Eric, glad to hear you got some irons in the fire.  Can't help you specifically w/ a contractor, but I wanted to give you props for making deals materialize!  See you at the JaxREIA meeting (wednesday night at Tom / Bettys Restaurant westside network group). 

nice find, Dean. Numbers REALLY look good, however...when it seems too good to be true....you know how that ends. I would look deep at the demographics as Sarah mentioned. Make sure you will have little to no vacancy long term.  Also, roof, electrical updates, HVAC, other systems that may need updating could be add up. 

This one sounds solid. Let us know how it turns out.