First Rental Property Purchase in Jacksonville, FL

[Adam M.]

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $110,000
Cash invested: $30,000

I used a conventional loan with 25% down to purchase this SFH on Jacksonville's Westside. Rent-to-price ratios are strong in this neighborhood, so this deal exceeds the 1% rule easily as it currently rents for $1250/month. Updates to the house included paint, LVP flooring, and some other minor cosmetic fixes totaling $5k. This was an estate sale that I found through the MLS.

Principal, Interest, Insurance, and Taxes: $490
Monthly Rent: $1250
Vacancy/CapEx: $375 (30%)
Prop. Management: $150
Monthly Cash Flow: $235

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

I've had an appreciation for Florida and Florida-style homes for a while now, and with the growth in Jacksonville, I started to become very interested in this market for investing. Home prices are also considerably lower in this area vs. where I reside in Maryland, so I can scale faster investing in this area.

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

I found this deal on the MLS the day it was listed and put in offer in right away - at full price. Initially, the sellers rejected and accepted a higher offer. That deal fell through, and they asked if we would like to make another offer. Again, we offered at full price, and they accepted. We were also able to get some credit back at closing.

How did you finance this deal?

I financed this deal through a conventional loan at 25% down.

How did you add value to the deal?

This was a light rehab, only needing updated flooring and paint, along with a few other minor cosmetic fixes. Comparable homes in this area are selling for about $125-$130k, so after investing $5k into repairs, I would estimate I have forced around $15k in equity into this house.

What was the outcome?

We were able to land a tenant in about 2.5 weeks! This is a buy-and-hold investment for long-term rentals.

Lessons learned? Challenges?

It didn't matter that much in the end, but in hindsight, it's a good idea for out of state investors to hire on a property management group early on. They know the lay of the land very well, and can ensure that you are not offering on properties in bad areas.

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

Agent: The Brett Nissen Team
Property Management: Valiant Realty

I highly recommend the Brett Nissen Team and Valiant Realty.