All Forum Posts by: Ian Brown

Alana, I am an appraiser but no longer active. 

I'd recommend Gerald Boorse 904-610-6558 or Mike Damato 904-718-0160 for residential work.

to your success,

Ian A. Brown, Esq.

Founder | Yield Coach Realty & Capital

Host | Jacksonville Commercial Real Estate Podcast

Subscribe to Yield Coach YouTube Channel

245 Riverside Ave | Suite 100
Jacksonville, FL 32202
O 904.203.4133
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Farman, I had an interesting guest w/ padsplit on my Jax CRE podcast. See below and subscribe to this channel if you are investing in NE FL.

Note, Jacksonville FL is the largest market (area) in the nation and fairly nuanced. St Auggie is notably different from city of Jax. 

Chase - sounds like your property is SFR, not MFR, correct?

Jax is complex and large, so my answer would vary based on rental type and location (I've had section 8/HUD in rough zip codes, as well as high-end Airbnb by the ocean in Jax).

JWB property management has been adding a lot of 3rd party rental mgmt, from SFR to small MFR across much of Jacksonville. They would be on my short-list.

Ian A. Brown, Esq.

Podcast Host - Jacksonville Commercial Real Estate Show

Pod Link - https://open.spotify.com/show/5u5Bka36PwBQ9Ht7T3swJ2

Investment Info:

Small multi-family (2-4 units) commercial investment investment in Atlantic Beach.

Purchase price: $657,000
Cash invested: $350,000
Sale price: $1,595,000

Unique Adaptive Reuse Project - Office to 4 Unit STR/Airbnb

This was purchased with existing office tenants in place and renovations are ongoing. Property was converted from office to STR/Airbnb and sold fully-furnished as a legal/functional vacation rental/STR in summer of 2023.

Obed, thanks for the shout and vote, sounds like we share the same mindset and I wish you the best in your efforts.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $657,000
Cash invested: $200,000

Unique Adaptive Reuse Project - Office to 4 Unit STR/Airbnb

This was purchased with existing office tenants in place and renovations are ongoing. Property will be converted from office to STR/Airbnb and should be fully-functional vacation rental/STR by summer of 2022

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

I own 2 vacation rentals a few blocks away and this was great opportunity to add 4 units in a creative way

Most investors didn't identify zoning allows STR vacation rentals and the property is already nicely configured for residential with 4 x 500sf units, which will become small 1 bedroom Airbnbs

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

Slowly and painfully, but eventually got to purchase price both parties could tolerate.

How did you finance this deal?

Private lender (physician) lent the entire purchase price and I will cover all rehab.

How did you add value to the deal?

The change of use! Office to Airbnb/vacation rental

What was the outcome?

Ongoing - should be ready for guests late summer 2020

Lessons learned? Challenges?

This project was hard to finance b/c it's an office and lenders were having trouble with engaging resi appraisers to handle this valuation of an existing office bldg.

Ultimately, I solved that issue by using a private individual for purchase loan.

Also, b/c this is "commercial" in city code, I have to use architect to draw everything for permitting and approvals and will likely need to add fire sprinklers to the bldg.

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

Brokered on my own behalf

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $428,000
Cash invested: $150,000

Historic Commercial/Office to Residential "House Hack"

1917 historic Riverside property, zoned commercial/residential/office (CRO), used as office space since 1994. Property never in residential MLS, so no competition for purchase and was able to convert to primary residence.

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

Unique opportunity to upgrade housing/neighborhood, while drastically reducing housing costs via "house hack" airbnb rental of studio apt on side of primary residence.

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

Never in resi MLS, so bought it off of Costar listing before residential investors had exposure to the opportunity, then converted to primary residence.

How did you finance this deal?

90% LTV, 3.9% interest, 300 year amortization. Brokered on my behalf (saved 3%), plus 5% credit from seller to buyer and $7.9k repair escrow

Later, refi'd to 2.6% rate in 2020

How did you add value to the deal?

Full/Gut $150k Renovation funded from tax-free proceeds from sale of prior home

What was the outcome?

We now live in beautiful home in great neighborhood with a small studio Airbnb "house hack" that pays for 80%+ of our mortgage

Lessons learned? Challenges?

Historic renovations take a long time and not all vendors are qualified to work on historic properties. Also, historic review boards have control over some your materials on exterior of property and require special certificates of appropriateness.

Overall, BIG LESSSON is that everyone should "HOUSE HACK" because it is such an amazing financial benefit to have almost no housing costs while living in a large beautiful historic home in a great neighborhood.

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

Brokered on my own behalf

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $50,000
Cash invested: $25,000
Sale price: $125,000

3 separately metered units, each 1bd/1ba cottage, on single tax parcel with heavy deferred maintenance. Wholesaler in Jacksonville emailed me with the opportunity

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

I had labor ready and needed a quick project, this was a good fit at an easy price point

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

Wholesaler

How did you finance this deal?

$50k purchase price, private (individual lender funded $60k (purchase price + most of reno) for 10.5% interest only for 12 months.

How did you add value to the deal?

Finished a tough ongoing eviction for the seller.

Reno: Heavy. Evictions, five dumpsters of materials removed from property, new floors, replaced bathroom floor joists, replaced staircase on rear buildings, new driveway, replace counters, water heaters, electric upgrades, vanities, paint, fans, blinds, appliances.

What was the outcome?

Cash sale to Canadian investors

Lessons learned? Challenges?

Be careful with permits! This project got shut down temporarily by city b/c water heaters and minor electrical work was done w/out permits. The time saved in not pulling permits is quickly offset by city shutting down your project, so when in doubt, pull em!

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

Brokered on my own behalf

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $38,000
Cash invested: $35,000
Sale price: $125,000

SFR property with excess land, zoned commercial, bank owned, without of area residential agent, 5 minutes from my primary residence

$38k purchase price, had money loan (Marshall Reddick) at 90% LV, brokered on my behalf (saved 3%), and renovated with a blend of savings, and credit lines from HD, Lowes, and Lumber Liquidators

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

Low $/SF in my own zip code with good comps and reasonable scope of rehab for new investor

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

MLS - Bank owned and commercially zoned. Resi agent didn't seem to understand the multiple exit strategies the zoning presented - could sell or refi/rent to resi or commercial tenant.

How did you finance this deal?

$38k purchase price, had money loan (Marshall Reddick) at 90% LV, brokered on my behalf (saved 3%), and renovated with a blend of savings, and credit lines from HD, Lowes, and Lumber Liquidators

How did you add value to the deal?

Full rehab/flip including new septic system, roof, and structural repairs to foundation

What was the outcome?

$55k profit which was 1031'd into 8 Unit C-Class Apt

Lessons learned? Challenges?

This deal took almost all of my cash on hand and was initially terrifying.

Ultimately, the fear of regret was stronger than the fear of failure.

Totally underestimated the scope/cost of rehab, but luckily I left a large margin/contingency in this 1st deal

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

Brokered on my own behalf

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $220,000
Cash invested: $10,000
Sale price: $360,000

8 Unit Value-Add C class MFR in Jacksonville FL

Purchased my own "pocket listing" and did light rehab - paint/pressure wash/rebranded

Added section 8 & HUD tenants while curing existing loss to lease

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

Low Market Exposure, Low Competition, Perfect size for Equity I had on Hand

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

My Pocket Listing

How did you finance this deal?

Local Credit Union 80/20 LTV

How did you add value to the deal?

Cured loss to lease, paint, pressure wash, appliances, worked w/ Jax Housing Authority to get more HUD/Section 8 Tenants

What was the outcome?

Sale to South Florida investor

Lessons learned? Challenges?

Hard to reposition properties out of cashflow.

It was a good time to sell it.

Any more value-add or capx work would've required significant capital, so I had done what I could to move the value with limited capital.

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

Brokered on my own behalf