Jacksonville zip code

[Shai Peer]

Hi, just offered 230k in cash for two duplexes that originally offered at 130k each (260k in cash).

Anybody here is familiar with 32246 zip code?

I am wondering since it is big investment for me and want to know what do you think about the area.

If you know anyhting anout the area let me know and how much would you estimate I would get in rent for a 650sqf 2bd/1br unit in the area. (Each duplex is consisted of 2 units of 2bd/1br)

Thanks!!

[Sarah Shockley]

@Shai Peer I find your post somewhat alarming. You're making an offer on two investment properties and don't already know what the units would potentially rent for?

Generally, the point of an investment property is to make money. So if you don't know what rents they would get, and how much the renovations will cost, how do you know the properties will be profitable at the price you're offering?

I don't want to discourage you, because real estate investing can be awesome. However, in order to be successful you MUST know the numbers! Ideally you should be able to do research and figure them out yourself, but if not, have an experienced team you can lean on to find properties worth investing in, and winnow out the chaff.

I'm a buy and hold investor in Jax with 14 rental units. Pretty much the FIRST thing I do when looking at a potential investment property to buy, is to find out what comparable places rent for. Since I'm a realtor I look at the MLS, but also Zillow and Craigslist have a wealth of information you can mine for free. Usually it'll be a range - say $600 for a kinda crappy place, or up to $850 if it looks like HGTV, etc.

Then I go walk the property to find out how much renovation it needs. Recognizing what work is needed, and estimating renovation costs are skills that take time and experience to acquire. Is this is your first purchase? If the buildings are more than 10yrs old I strongly recommend finding a contractor or someone with comparable skills to walk properties with you. What if both buildings need new roofs? That's easily $10k right there. Is it on city sewer, or are there septic systems? $8k/each if new septic systems are needed. You get the idea. Renovation expense should have a significant impact on what price you offer, or you could easily be buying an unprofitable property.

@Zoran Domazet has done you a solid by actually walking the property and giving you a list of some of the repairs needed. I will thank him on your behalf - Thank you Zoran!! If you're trying to invest from out of town you REALLY need knowledgeable "boots on the ground" so maybe he's someone you can work with. 

As for the location - I notice lots of investors from California asking about this zip code or that zip code - not sure why that is exactly. In Jacksonville the zip code has little to no bearing on whether an area is "nice" or not, and often one zip code will contain multiple neighborhoods of varying quality. For example, 32205 where most of my properties are, contains parts of the neighborhoods Riverside (B/A), Avondale (B/A+), Murray Hill (B/C-), and Hillcrest (C/D), etc. Even within one neighborhood, some areas will be nicer than others or attract very different types of renters at very different prices- there is a lot of variation.

Ok I've said a lot here. What it all comes down to is this: Knowledge is necessary for success in real estate investing. If you can't or don't want to acquire it yourself, then you need to surround yourself with smart people who will help you.