All Forum Posts by: Account Closed

I'm an active investor in Jacksonville, and I already have my CFP designation, so we are from similar backgrounds.  

In the price range you mentioned there are some houses available, but expect to be in something built 1985 and before.  In Mandarin there are some 2/1s that you can get for a pretty low price, and Mandarin is a decent modest area - I live there too.  I would avoid downtown in that price range.  

There are some other houses near 295 and Atlantic that are close to the price range you mentioned, but they are going to be closer to 50yrs old and may need some work too.  

I would submit for your consideration - like someone else said, get a storage unit for your stuff and then rent an apt on Southside between JTB and Baymeadows, then start your search when your mind is clear.  

Thanks for the response!  I have an appt set w/ a commercial lender here in town next week.  I really appreciate the numbers you provided, even if FL is different it's nice to have a rough idea of what the terms may look like.  

There are alot of what-ifs and other things that need to happen for me to do this first, but I wanted to field this question to some experts to get thoughts on whether it even makes sense to begin with.  

My potential strategy - 

Get one or two of my existing properties paid off completely, then work with a lender to get a line of credit against them.  ( I heard this in one of the podcasts) 

Then use that line of credit to acquire other properties with "cash."  After the properties are fixed up and rented, refinance them to a normal 30yr loan and pay off most of the commercial line of credit.  

The advantage I'm trying to put together by doing this is to force the price of the property a bit lower by bringing cash, then in the refi process hopefully have the property appraised at a higher value than I purchased it for, thereby enabling me to avoid having to put down 25% and tying up the money.  

This would mean a higher mortgage payment but since less of my capital is tied up, then I would be a bit more liquid.  

The line of credit could then be paid down with income from my day job supplemented by the additional rental income.  

Thanks ahead of time to anyone posting any responses.  

James, I'm in Mandarin, welcome to the forums.  I'll be interested in hearing more about your successes.  

In reading through alot of the other stories already posted a common theme comes across loud and clear - FREEDOM.  

I want to have enough income coming in from sources other than an employer so that I have the freedom to support my parents as they age, support my wife's parents as they age (in another country!) and be a big part of my kids' life.  

Travis - Funny to hear someone anywhere in FL talk about moving further south!  Congrats on the baby!

I would agree with the other commentators.  Keep the hardwood even if there is some maintenance associated with them.  If the tenants in your area are expecting nice floors,  and your unit has laminate in it, they may not stay as long because it doesn't "feel" as nice - which would result in turnover costs anyway.  

Going a step further, since you are going to be in the unit refinishing the floors anyway, is there anything else you could do to justify the higher end of your rent range? I'm just thinking that the nicer the unit, the longer they stay, and the more they'll probably pay.  

 Aaron, I'm with you - it's a little tough to find a solid property in a better neighborhood.  I've done some properties that are a bit more than that range but the numbers aren't nearly as sexy as some of the lower end stuff.  But neither me nor my property manager are likely to tolerate lower range tenants well either.    

@Arlan Potter - that's exactly why I'm asking.  Selling is a big consideration.  Ideally how much rent would you like to see?  Let me correct some of the numbers above too. The appraisal was done after all the work was completed.   

Rent:  13800/yr

P&I: $8388 w/ insurance and taxes escrowed

PM: 1150

HOA 300/yr (oh yea and a one-time assessment of $490 in January

Expense budget 1000/yr

After the great success of my first property, I moved quickly on to my second. The house is in a neighborhood that I would classify as an island of B surrounded by a sea of C. I knew the house would need work but the price plus what the ANTICIPATED work was supposed to cost was something I was comfortable with.

Bought the house for 104k, 20% down, interest rate was 4.875. Put ~5k of work into it. Also there was a form from the HOA that was part of the deal stating that certain thing would have to be done after I took ownership. One of those thing was – re-sod the entire lawn.

Then the issues began. It sat empty for close to five months after the work was done. We had showings and applications, but nobody we felt comfortable getting into the house. We anticipated rent at $1200 but finally got it rented at $1150 to someone that is likely to stay for a number of years.

With the help of the PM we managed to push off the resod until this year, but in talking w/ the PM, he recommended putting a sprinkler system in, and putting up a fence. The combination of the two would pacify the HOA and alleviate the potential for future resods based on the tenant having good excuses for not caring for the lawn. (The tenant pays all utilities) All of this work cost around 12k last year.

So I’m into the house for roughly 38k including the other work and the down payment.

Rent is 1150

P&I w/ insurance and taxes escrowed $699

PM: 1150

HOA 300/yr (oh yea and a one-time assessment of $490 in January

Expense budget 1000/yr

Where would you go from here? There aren’t many comps in the neighborhood, but I’m guessing it could sell for around 130-140. The appraisal came in at $110.