All Forum Posts by: Dena Zeid

Hi @Dena Zeid - Yep! I have 6 properties (14 units) in A and B neighborhoods here in Jax, live entirely off my rental property income, and have been a full-time investor for a few years now. I'm looking for #7 at the moment, but so far haven't had much luck.

I've followed the Jax market meticulously since 2011 when I bought my first house (and am a licensed Realtor), and every year prices go up and inventory goes down, so finding properties has only become more difficult as time goes on. Personally, I'm not willing to compromise on quality of location or on profits earned, so I just wait until the right place comes along.

This is my goal, to live off my investments too. If you don't mind me asking, what kind of properties do you have and what do you consider A and B neighborhoods? I'm also assuming that all your properties are paid off in full and this is how you have good cash flow to live off?

do you manage your properties yourself?

sorry for the many questions.

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Originally posted by @Sarah Shockley:

@Dena Zeid I feel your pain. Yes, the BP community makes it sound easy to find investment properties, but reality is that 99.9% of the properties available on the MLS will not turn a profit of any kind. (and anyone who says differently is probably selling something lol)

Inventory is historically low, demand is high, and the Jacksonville market sees an incredible amount of investor activity - something like 50% of properties sold below $300k are cash transactions. Competition is fierce for any property that could be even remotely construed as an investment. I can't even remember the last time I made an offer on a property and there weren't multiple offers.

Your options are to continue waiting and watching, find creative ways to source properties (auctions, direct mailers, etc) or be willing to accept a lower return.

As for me, I keep making offers, but it does feel like there's always someone who's willing to pay more.

Thank you for your advice. Are you successful in investing in Jax? Do you have any rental properties?

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Originally posted by @Mike Smith:

I'm analyzing properties in Jax as well and having the same trouble. The only properties that appear to cash flow are the really cheap ones, and it seems like all the experienced investors warn against buying in really bad neighborhoods, especially since I'm both inexperienced and don't know the city. I'm using conservative cost estimates, too, but I'd rather miss out on a property than get stuck with something that's costing me money.

How are you estimating insurance costs? I'm using Redfin estimates and adding 15% but there seems to be a huge difference between homes that appear to be similar value (and I'm not considering houses that require flood insurance).

We're in the same boat! I don't know how people do it in Jax but I've been watching the market for quiet a while and the only really good deals that come up are foreclosures which get snatched right away by experienced investors.

the insurance, I honestly just go by what Zillow gives me. Maybe I'm wrong, but I find Zillow very accurate most of the time.

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Originally posted by @Aaron K.:

@Dena Zeid I am not an expert but I don't think the entry point for Jacksonville is $180k, there are plenty of quality houses for less than that in a quick MLS search. If your expectations are realistic, and you are calculating returns correctly, there are properties to be found. It is not impossible.

There are cheaper houses but I won't consider them quality. Cheaper properties return lower rental income plus lower class tenants. So regardless, I'm still in the same boat with not much cash flow. My expectations are very realistic...

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What's a typical interest rate on a rental property in the state of FL?

I know it's higher than an interest rate for a primary residence, but how much more?

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Originally posted by @Aaron K.:

@Dena Zeid with how much down? as much as you want to be on the safe side I suspect you are passing up a lot of good deals doing that, by taking $100 away from rent and adding $100 to expenses you are then essentially asking for $500 of cash flow instead of $300 which is going to be much harder. You can do worst case scenario analysis, but that shouldn't be the thing that disqualifies properties.

I'm just looking for a 200 cash flow. But the rent in Jacksonville, FL is so cheap, it's impossible to get any cash flow. As an example, A 180k house might only rent for 1400 if lucky. The mortgage on that property would be about 1,020 (includes tax and insurance) with 20% down. Adding monthly expenses of 5% vacancy + 75 for repairs + 100 for capital expenditure, brings the total monthly expenses to 1,265. This is only 135 cash flow and that's assuming it does rent for 1400 which is being optimistic. See my point?

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@Ned Carey but I've done a lot of research and listened to a lot of podcast. They all say that the rental should be in a good hot location for it to be easier to rent. It might not be in a good condition, but the location hast to be good. For this reason I'm avoiding out in no where properties that might be dirty cheap but will give me a lot of headache trying to rent and also tenant headaches.

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@Aaron K. I am over estimating my expenses and under estimating the rental income to be on the safe side, but not really too much. So I don't think it affects my numbers that much. I'm also bring realistic on my cash flow. I'm aiming for 300 cash for, but it seems impossible.

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How in the world do you find a good investment property. Whether it's a flip, rental or brrr. I've been wanting to to invest in real estate for years but can't seem to find not one good deal in Jacksonville FL! I was looking at a foreclosure just now, listed for 180k, market value after repairs 230k. Probably needs 15k to fix. Rental income is modestly 1200. I ran the numbers on the BP calculator and I was negative cash flow!

this is very frustrating. Everyone makes it seem easy, but it's near impossible to find a good deal. At least for me.

please help!

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The property is under contract already. They bid too high and it went for not much less than its value

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All Forum Posts by: Dena Zeid

Dena Zeid has started 9 posts and replied 35 times.

Post: Brrrr or rental properties

Post: Brrrr or rental properties

Post: Brrrr or rental properties

Post: Brrrr or rental properties

Post: Interest rate on a rental

Post: Brrrr or rental properties

Post: Brrrr or rental properties

Post: Brrrr or rental properties

Post: Brrrr or rental properties

Post: Hubzu listing