Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
First-Time Home Buyer
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago,

User Stats

4
Posts
2
Votes
Abib Ben
2
Votes |
4
Posts

Jacksonville - Agent sent me bad deals and I have questions

Abib Ben
Posted

Hello!

I'm looking to buy my first investment property, and I've been scanning through a bunch of markets to find a place that would be suitable.

I've been looking in Jacksonville, because I found an Springfield area to roughly hit the ~$300/mo cash flow I would like.

Reference: https://www.biggerpockets.com/...

So, I reached out to some real estate agents and found one that has worked with a lot of out-of-state investors like myself. Today, she sent me a round of properties, some MFH, the others SFH.

I analyzed 2 of them, and came out with horrible results.

MFH: https://www.biggerpockets.com/...

SFH: https://www.biggerpockets.com/...

As I said, this is the first time I've moved past individually analyzing deals and got properties sent to me by the real estate agent... the deals she sent left a bad taste in my mouth. 

In my eyes, these are horrible deals. I don't really know how to navigate these feelings and situation, so I decided to ask BP. 

1) Why would she send these to me? Shouldn't she know that these are bad deals?

2) Are people paying this much for these properties? The nearby sales indicate no... but even the nearby sales are confusing to me. Why are people paying this much for properties that don't have anything remotely close to positive cashflow? Am I missing a strategy?

3) Is this just the price you pay for being in a good location? Are people potentially taking negative cash flows and strategizing to profit off appreciation? Or are owners just willing to pay that much for a property to live in themselves?

4) My initial excitement for Jacksonville came from analyzing the cheap neighborhoods, not the nice ones. Is this a mistake? If I do decide to go with these cheaper neighborhoods (properties around $100-150k), how do I get loans for this amount? The mortgage broker I've been working with initially says that getting loans with that low isn't optimal/feasible given the interest rates I would get charged. I've heard people refer to hard money or suggest using local banks instead? Any recommendations if I do decide to go for a cheaper neighbor for my first deal?

Thank you for reading and any help you might provide me. 

Loading replies...