All Forum Posts by: Lesley Resnick

The other problem with COC is that it is easily manipulated. What is the COC on a house you pay cash for vs a house you finance? The cash in for the first example is clearly higher, but is it better deal? If you renovate the property in year one, what does the COC look like? What if you leve the building vacant for 6 months while doing the reno? Don't do anything, delay all maintenance, COC looks great. If you are someone likes to consider, cap ex, repairs, reserves and vacancies, COC falls apart there as well.

There are very few REAL number in real estate.  The rest are derived from the REAL numbers and even those become less meaningful over time.  I like gross rent multiplier, how much the property produces compared to its costs.  It allows a comparison of the performance of dismissal assets.  The second number I like, is how much do you have left after paying actual expenses, not the "could be" expenses.  It is difficult to normalize future expenses on an old building vs a new one.  

The last part is a little squishy, what is the area like?  The more depressed and rough the area, the higher the return. Ocean front real-estate generally has horrible cash flow.   

The lots are split and reflected online. I need to go back to addressing and get a number for the second lot.  I may go owner occupied. I was talking to a lender and their low income programs are amazing, if you qualify.   

Got another citation from the city.  They told me if I send them proof we are moving forward they would not write me up.  I called and left a message for they guy at the city.  I need to deal with the city on the splitting of the lot.  I have not gotten back to it.

Kind of loooks like it was house or maybe a playhouse.  There was water at one time, but no electric.

 Thanks for the kind words…

I did this for a fix and flip last year and thought I would docuement this build.

The building was secure and the city inspector went by and agreed it was acceptable.  i am not sure what the building will be used for but it is a nice feature.

I was talking to an investor I know and he thought that I should sell them off retail to owner occupied, rather than investors.  It is a low price point house and there is demand for them.  I am just not sure if there are a lot of first time home buyers in the market.  I have time before I have to make a decision.

Spoke to the city this afternoon.  They have accepted my documentation for the secondary structure and will need to provide more info in a month to prove we are moving forward.

They also informed me that I have an open violation for not securing the building.  They are going to send a contractor to secure the building and charge me.  I have all the windows and doors covered up.  My only concern is if someone pulled them down.  I will send someone by tomorrow.   

Interesting fact:

You may not have a secondary building without a primary.  In other words if you knock down the house (primary structure), you can not leave the garage.  This is exacly what I have done.  There is a small block building in the rear of the lot.  The city has sited me for the building.  They have agreed not to fine me as long as I can demonstrate that I am in the build process.  

There was a burned out house on one of the lots.  The house was on the city's radar and I had to make sure that I followed their procedure exactly.  I have repaired houses that were on fire, never demolished one.

1.  Since it was on fire, the electric was already disconnected.

2.  I needed a plumbing disconnect permit.  It is one of the few permits that you do the work then apply for the permit.  The plumbing permit must designate how far from the street the sewer was cut.  Then they inspect and close out the permit.  

3.  Demo permit

The demo was done by a local guy, he is an interesting character.  Prior to the crash in 2009, he had 10 truck on the road doing demolition work.  He said he was killing it and one day people just stopped calling.  He had a staff of 20 and almost that much equipment, mostly financed.  Fast forward to current times, it is just him and one dump truck and a tractor.  He is quick to say he owns it all and the business is just him.  He is not making what he was, but says he is happier without all the headaches.   

Never considered they may look at the google earth.  Seems like a lot of effort on their part.  They need to visit the property and then compare the pictures.

The lot is currently one parcel and I am splitting it into two.  The city site has it listed as 2 parcel numbers, which helps considerably.  I have completed the necessary forms and the survey.  A solid survey company is really important for any build.  This is not the same as a survey for closing most RE transactions.  It requires, topographical, trees and boundaries.  

TIP: clear all trees you think that will be in the way of the foundation before the survey.  Most municipalities have landscape requirements and they are often tied to how many trees have been removed.

The city of Jacksonville has shut down its recording systems for the rest of the year.  They are calculating property tax for the rest of the year.  They will still process my records, there is a 4-6 week backlog.  It will not be recorded until 2023.  The city zoning department will not assign an address until it is recorded.  On the upside, this will not stop me from building.  If any of the agencies challange this, zoning has agreed to  write  a letter on my behalf.  Should I decide to sell, I can not without an address.  I am looking at a 6 month build cycle, I should be fine.