Investor Jacksonville, FL -- First House Hack

[Christopher Goodin]

Hey there Bigger Pockets members!

I have been using bigger pockets for over a year now, and have finally decided to share my first deal with everyone, and hope to soon find my next deal. My first deal had some hair on it (required substantial rehab, inherited existing tenants, required city approval to reconfigure), but was a great experience that I would do again and again! Feel free to share your thoughts/comments.

I purchased my first quad-plex (2 - 2 beds, 2 - 1 beds) at the Beach in Jacksonville, FL in November 2014. The property consists of two building that were built in the late 1930's, and had little improvements/maintenance since the late 70's/early 80's. As such all kitchens and bathrooms needed renovating, along with new plumbing (was poly), and new HVAC (was window AC). Below is a breakdown of the financials at purchase

Gross Rent (All 4 units rented): $3,200

Purchase Price: $372K

Through necessary rehab, and knowledge of the market, I determined I could increase rents, find better tenants, and lower maintenance/my time dealing with issues.

I purchased the property through a 203K renovation loan, with 3.5% down, 30-year fixed. After approx. 4.5 months, the property was completely renovated, and re-rented it to new tenants at the increased rates. Below is a breakdown of the current financials

Gross Rent (me living there - 3 of 4 rented): $4,750

Gross Rent (without me living there): $6,600

Purchase Price: $372K

Rehab: $144K

Total (Purchase + Rehab): $516K

Around 1 year later, I decided to refinance the property based on the new appraised value, and remove the PMI (1.1% - roughly $500/month).

I am now on the search for a another property at the beach (single or multifamily), or other well located areas of Jacksonville, that have value add opportunities.  I welcome any questions, and would love to hear thoughts from the BP community.