4491 // Florida

[James W Tollick]

Investment Info:

Single-family residence buy & hold investment in Middleburg.

Purchase price: $150,000
Sale price: $315,000

Purchased via VA loan. Lived in for 3 years, rented for 7 years. Recently sold to build rental portfolio.

What made you interested in investing in this type of deal?

I was tired of living in apartments and I wanted to put my money into a home that I owned and build wealth from.

How did you find this deal and how did you negotiate it?

I hired a local realtor and in the Jacksonville FL area, it was booming with house development. I purchased this house brand new from KB Homes (wouldn’t recommend lol). I didn’t know what I was doing, I was 21 at the time so unfortunately I was winging the process.

How did you finance this deal?

I financed this deal with a VA loan, 0% down.

How did you add value to the deal?

N/A

What was the outcome?

I purchased the house for $150,000. Sold it for $315,000. After taxes, closing and 2.5% agent fees I walked away with $172k, more than what I purchased the house for.

Lessons learned? Challenges?

When renting a home, do research on rental property agents. I was referred to an agent by a co-worker, and the agent didn’t work out. She ended up bailing on me after she made behind close deals with other people. I learned to save at least $10k for emergency maintenance issues for a rental.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I can recommend one agent: Kenneth Smith Jr from Florida Homes Realty & Mortgages. After my other agent (she who shall not be named) bailed on me, he took over and fixed the issues I had from the previous tenant and eventually helped me sell the house, 4 years later. Super professional and positive communication. If you’re going to purchase rentals or a personal home in the Jacksonville area, I’d recommend Ken.