Duplex Development - Jacksonville, NC

[James Johner]

Hello all. Wanted to share our latest Duplex development in Jacksonville, NC. This duplex will be complete mid-spring and will offer a solid class B living space with a class A feel. With engineered hardwood floors, white cabinetry, stainless appliances and granite counter-tops. This property will offer affordable housing for military and the community alike. Stay tuned for further updates. 

Pre-construction-The first month of this development came with a few challenges. We purchased this property in February of 2018 and have encountered a few speed bumps along the way to get though the entitlement process. With all of this behind us we live full steam ahead towards cash flow. 

Month 1-This month construction begins. We have finished our demolition (Property had and existing double wide that was in terrible condition) and have set form boards to allow for underground plumbing to begin. Underground plumbing was was completed this week 11/19/18 and slab will be poured the week of 11/26/18.  Framing will begin to go vertical the first week of December.

[James Johner]

Mike Wood thanks for the questions! Gladly will share.
Total overall project is budgeted at 155,000. The total square footage is 2100sqft and will be 3/2 on each side. Smaller living spaces with larger bedrooms.
Randal
The rental in this area will be $850 per unit and is expected to rent quickly given the high density of military and individuals displaced from Hurricane Florence in the area.
We financed this project using a local lender on a Constructon to prime mortgage with a 5 year balloon and a 20 year amortization with a fixe 5.5% interest rate once prime.
With both units rented this property should cash flow +\-$350. Given that it is a new property, Cap ex should be extremely low and over all maintenance costs below the norm. This should yield a 12% cash on cash return and make for a good hold property.
Property is expected to appraise for roughly $180,000 once complete and we will most likely sell within the next 8-16 months to move to a larger property.

Thanks again. Feel free to chime in with any other questions or items I may have left out!