All Forum Posts by: Kyle Jensen

We tried Zillow and cozy, but ultimately had the best candidates from Facebook marketplace and a sign in the yard. 

@Evan Berg

Having cash in a downturn is a great idea, but unfortunately a HELOC is not really the same as having cash on hand. In a downturn, your primary residence will likely go down in value and the bank could close your HELOC if you don't have enough equity available. I would say open a HELOC now and begin using it. Better to get going now and adjust your strategy once you get a few properties under your belt.

@Jay Yoo

We have not used Zillow other than for listings, but we too use Cozy as well and have been happy. Both from a screening perspective as well as online rent payments via ACH transfers.

Welcome to the family Tony! 

Renovations are finished and the rental listing is now active. I’m also in the middle of a refinance (using delayed financing) so we can get our purchase price back quickly (don’t have to wait the 6 month seasoning period). The appraisal came back this week and was $10k higher than we needed! Now we just need to place a tenant! 

@DMikal Mitchell it sounds like you have the right high level steps planned out and you have received some great advice above. 

On the refinance side of things, make sure you have talked to a few lenders about the true costs to secure those loans. I think many people get surprised by those costs and where many people think they will get “all of their money back”, this is an area where you can easily leave a couple thousand in the deal. 

Outside of that, I think you need to jump in once you have found a property where the numbers make sense. There will be issues and lessons learned on every property and every deal. If you wait to take action until you have all the answers, you may never buy a property. 

@Johny Omaga

Congrats! Care to share some of the numbers with us? Purchase price, Rehab, Target ARV and rental rate?

Thanks

@Ryan Robbins it’s in the Cedar Hill Estates area. What areas have you been buying?

@Jon Roes here are the high level numbers. 

Rent $1,050

Vacancy (5%) $52.50

CapEx (5%) $52.50

Repairs (5%) $52.50

Taxes $100 

Insurance  $70

Mortgage ($78k @ 4.75%) $406.88

Monthly cash flow $315

This of course does not account for property management which we will be doing ourselves until we hit about 5 properties. At 10% that would of course take $100 off the cash flow number.
I know the repairs and capex are low as well, but with a new roof, plumbing, and electrical upgrades, the major stuff is taken care of. The AC is also only a few years old too. We plan on saving all cash flow from the property and will recycle that for another property when that time comes. So all funds will be placed in savings and we should have a pretty decent reserve in just a few months.

@Isaac S. Ha! That is quite a question and one I’m not necessarily qualified to answer. There is lots of info out there on the forums regarding the Jacksonville market and different investment strategies. Jacksonville is a competitive market, but there is still lots of opportunity out there. Lots of big business and multiple industries make the job market strong. At this point I don’t have any plans to invest outside of JAX. 

Roof got started today (and of course it began raining), carpet was removed (original wood will be refinished), and countertop went in today as well! Should be complete with all renovations by end of next week.