All Forum Posts by: Kurt Stein

Hi, I recently found a gentlemen who is flipping his home in Murray Hill, in Jacksonville, and I've been in discussions to purchase the property from him when the renovation is complete. The garage behind the property was renovated into a 1 bedroom unit, equipped with a kitchen, bathroom, living room, etc, about 15 years ago, and he's been renting it out ever since. This brings up several questions & concerns. 

1. Do I need a rental/landlord license of any kind in order to rent out the main house or the small 1 bedroom apartment in the back? I've never lived in Murray Hill and was unsure. 

2. No permit was ever pulled when he was building/renovating the 1 bedroom unit in the back. What kind of implications does this have?

3. Can the square footage of the 1 bedroom unit be added to the total square footage of the property during the appraisal? If not, would I ever be able to do anything in order to sell the property counting that square footage? Would the fact that no permits were ever pulled have any impact on the appraisal?

Thanks,

Kurt

But to Collin S's point, short term rentals are allowed in Atlantic and Neptune beach as long as you obtain the proper state licensing, but I'm pretty sure these folks have to pay a substantial hotel tax. 

Hi all, I've lived all over Jax Beach, and currently live in Atlantic Beach. You guys are pretty close. All are separate jurisdictions. Jax Beach does not regulate short term rentals. Neptune Beach doesn't allow rentals under 30 or 35 days (I can't remember which one) and Atlantic Beach doesn't allow rentals under 90 days. 

I've heard several stories in Neptune Beach of home owners being notified or fined for attempting short term rentals, so the city is definitely keeping a look out. On one occasion, an investor actually bought a Neptune Beach property in order to rent out out short term on Airbnb, and actually didn't find out that it was regulated until after he closed. Heard he sold the house immediately for tens of thousands of dollars less than what it was purchased for. 

I'm going to be honest, it's tough finding a good cash-flowing deal out at the beaches. The only way anything makes any sense right now from a financial perspective is if you calculate appreciation into your equation, and that's never a guaranteed thing. 

Hope that helps!

The beaches areas are great (Atlantic, Neptune, and Jax Beach) although relatively expensive at the moment, especially as inventories are low. I do agree that the Mayport area near the military base is less desirable, although it does seem like some investors are going in there and flipping some homes and building new construction. It's tough to say where the best return on investment will be but if you know the area well you can spot a good investment here and there, but they're becoming fewer and further between. With prices so high, I think flipping might provide the best returns right now. It's tough to find a good buy and hold investment right now out at the beaches, unless rents increase substantially or you get lucky with appreciation.

Thanks a lot Steven Hamilton II .... so on the county website it has a lot of numbers.... it shows the assessed value at $245,060 and the land value at $41,225, but also shows the building value at $208,339. I paid $310,000 for the property. If I take the ratio of land value / assessed value, I get about ~17%. If I multiply this by my purchase price, I get a land value of $52,700. Subtracting this off, my cost basis would be $257,300. Does this look about right?

Thanks for the reply Daria B. ! Yes, I used the county website but their tax assessment is so far off from what the actual value of the home is, which is why I'm confused. Either way, I'm going to do my best and then have a tax professional take a look at it when complete to make sure everything looks okay.

Hi BP, I'm preparing my taxes and am trying to determine the value of depreciation that I can write-off on my taxes. Where do I find the cost basis (value of structure) for my rental property? Is it on the county website or is it on a document somewhere from closing? Also, I have two capital expenditures that added value to the home, a $2800 driveway widening and a $3000 deck/pergola in the back yard. I began renting the unit out July 1, 2016. Can anybody help walk me through this calculation? Thank you, Kurt Stein

Hey Brett! This wouldn't happen to be the spherical (ball) shaped house right on 3rd street, would it? I think right off of Oleander. I've seen that property listed and go under contract several times only to fall through each time and price reduced over and over and was just wondering what was going on with it. Anyways, may be a shot in the dark but figured I'd ask lol. Best of luck with the purchase and zoning changes!

Yes, John Anderson I was actually just out looking at cameras today. I will probably pull the trigger tomorrow (cyber Monday). But yes, it'll definitely be at my expense, not the tenants.

Has anybody tried the Arlo cameras? Pros and Cons of using them?