All Forum Posts by: Nikia Johnson

HI Rodney, holding a hard money loan for 2-4 years the holding cost will be pretty steep. Have you considered using a hard money loan to flip to generate enough revenue to purchase the property outright or maybe wholesaling locally to generate revenue?

Hello Wendy,

I see you are in New York so I feel inclinded to ask about the 5K for rehab are you flying down to take care of the repairs? On a 40k home only having to put in 5k seems pretty low unless maybe this is a condo or manufactured home. You also mention using a conventional loan most lenders will not finance under 50k so it would need to appraise at 62.5 @ 80% LTV for it to work. Just some things to ponder I wish you much success!

Hello

@DB Brooks I am going to assume that your goal here is cashflow so if I am wrong in my assumption forgive me. On a 150K mortgage including Tax and Insurance not including property management would run you around 1 K a month. My experience here in Jax when you start to get to north of 1K a month the tenant pool becomes a little tight and you would have to do that to cashflow on a mortgage of that size. Two options in this scenario to optimize cashflow would be to do an interest only loan and make aggressive payments while you are in the home to pay down the principle and then only make the interest only payment while renting. With that approach it would allow you generate more cashflow when you rent but you are not paying down the principal. The second would be similar to the first but to refi prior to renting with the goal of lowering your monthly payment to increase cashflow.

Good luck! 

Well Eric, let me start off by saying there are worse places in Jacksonville. However I think you asked if it was a smart place to invest but I think there are a few things you would have to take into consideration to decide if it is smart. One thing is you will not get much appreciation in that area. You could get decent cash flow since you should be able to get into the area cheap. I am not sure if you want to PM the investment but there are places in town where a PM won't work because they feel the 50 - 60 dollars they would make a month is not worth the headache. Unfortunately I  have been told that so that is one thing I consider when buying a property since I don't want to do any PM at all.

East or West?

Don't sweat the owner not accepting your bid there is a chance the person who offered them 40 (If that was a true offer) didn't know how to bid on the property. 20k margin on a fire damaged house that only has a 60k ARV is pretty tight. Hold true to your numbers shake the dust off and keep it moving brother!

Hi J,

All of the deals I have been doing have been from online auction sites so I have not used anyone here in town but All Florida Title is a sponsor of the local REIA and they look like they have pretty good rates. http://www.allflatitle.com/?no_redirect=true

Let me know if you have any questions about Jacksonville or ever need any boots on the ground.

 Thank you for the advise Lynn.

Hi Jennifer I have not heard of the Investor Specialist approach before. 

Thanks!

 Thanks Account Closed