BOGO Deal in Jacksonville

[Kimberly Gopp]

Closed 2 deals this week & the exit strategy gets me another SFR with no additional costs.

We finally closed on our 2nd buy & hold in Jacksonville (1st back in ’05). We also closed on another deal the same day — A build able LOT. This separate parceled build-able lot sits behind the single family home we purchased. The seller only wanted to sell with it all bundled together.

Even though the home was turn key it still met a 1.5% rule for renting. That made me take a second look. The value to be added was the lot that could be sold off in the back thru a 1031 and I could get another similar property. That's 2 buy/holds for the price of one- BOGO. A small local builder verbally offered 25k for the lot before we closed.

Then I think, well I am an investor…right? So why can’t I partner with a local builder and make an even higher return. 

My value to add to a partnership is offering a 70 x 120 ft lot with new homes popping up all around replacing the old ones & comping at $170-$190k. There is also value in having my license to sell it (an official ACTIVE license as of 24hrs ago! HA! ) Who knows but the options are there and more than one exit strategy is great!

For now I will focus on getting the SFR rented and then re evaluate the exit strategies for the LOT.

Any feedback or advice from the experienced on exit strategies for the lot. Sell it, Partner with it?