Potential BRRRR Deal in Jacksonville

[Andre Walker]

Hey Everyone, I am new to real estate investing and looking to close my first BRRRR deal. I found a property in Jacksonville FL, ask is $57k, the owners are flippers in the area that rehabbed most the property, but found better deals and want to sell to fund their new deal.

They just added a brand new roof and said they have a 15 year warranty from the materials company. From the pictures and what they told me the property still needs some work, minor plumbing, a new toilet, flooring/carpet (only about half the house) and to replace a 1 or 2 windows. They said it should be about $10k (still doing my own research to verify that, seems little low). 

Rent in the area is about 695-800 according to the rental property analyzer on Biggerpockets, so RTP ratio is just above 1%, i am looking at about $230/month in cashflow, and RTI ratio in Jacksonville is about 27% so still room for growth. 2 homes in the area sold for $103k and $108k (both within the last 6 month, and the property that sold for 103K is on the same block, 3 houses down), the property located near a very good high school and Elementary (both 5 stars according to google, lol). So all the indicators are telling me this is a good deal, but as i said it is my first deal so im a little nervous, i am also thinking about flipping the property as the comps seems to support it. But I'm 26 looking to quit my job and retire in the next 3-5 years so cashflow is more enticing to me right now. I just want to get some feedback on what you guys think, what i should be looking out for? What i might be missing? Or what I am doing right, (thats always encouraging). The X factor is I am from Brooklyn, NY so i would be out of state investing. But any advice would be super helpful, as well as any info for good contractors/property managers in the area.

Thanks everyone

[Ralph Chiaia]

@Andre Walker hi Andre, I’m also from Brooklyn and have two SFHs (3/2s), a duplex, and a 20-unit in JAX. The key thing is the zip code. I can’t tell from your info if the deal is good without knowing the location. Share the zip and I’ll give you more of my impressions. Feel free to share here or message me if you’d like more privacy. My general impression is double the rehab number they gave you and make sure your comps are accurate, same number of bed/bath, similar square footage, etc. If the numbers still work, go for it. My worry is you’re paying them for their unfinished business.