investing in jacksonville florida

[Terrence Rivers]

i have 100k and i have my eyes on these 2 triplex on the west side of Jacksonville Florida one for 39k and another for 49k both needs about 5k in repairs. i thinking of buying them out right.  My main focus is cash flow I'm trying to work my way out of the military so monthly income is king to me. Does anyone else have any better suggestion on how to invest my 100k?

[John Hamilton]

@Terrence RiversCongrats on wanting to join the ranks of REI. Here are some of my thoughts and suggestions, if I was in your situation.

$100K is not a lot, but maybe enough for your plan. The price and rehab costs don't leave much room for mistakes. If you don't have reserves or anything above the $100K, I would leverage a property immediately to help cover or reinvest. Or rethink your strategy.

MF is tricky and has its own inherent potential for problems. For example, instead of 1 or 2 renters, now you're dealing with 4-8. Each with their own hardships and story. You might get great tenants. You never know. A good PM will take care of that for you.

Repairs (now and in the future) are going to be your highest costs. Understand the condition of your big ticket items (HVAC, furnace, air conditioners, sump pumps, plumbing, electrical, foundation, roof, etc). You'd better confirm the total of $5K rehab costs. Paint and wood flooring can be done for $5K. Is that all it needs? What about 1 year from now when you have to pay $12,000 for a new roof for both properties? Leveraging then when you're desperate is not as good as leveraging beforehand to do preventative maintenance/replacement, when it's cheaper and you have time to deal with it. What about damage from your tenants?

Do you have relationships with companies that service these ticket items? If not, and you don't know how to repair it, you better get started. How about GCs for those nasty, unknown structural problems? How about a handyman for painting, drywall, tile, cement, fences, little plumbing and electrical? What about lawn care/landscaping?

Are these places fully occupied? What s the net cash flow you are looking for? Are the rents leased or month-to-month? Are the rents comparable or can you increase? Is the neighborhood in war area or decent neighborhood, street or area? Lots of places you don't want to invest here in Jacksonville, if you are the faint of heart. However, if you have no problem with these areas, good on you and more power to you.