All Forum Posts by: Lesley Resnick

I would not over complicate your life.  It will take you longer to set it up and maintain than any value you will receive.  

Use a single account for all transactions in and out.  Find an online payment system, that will be more important than an accounting system.  You should have under 15 transactions a year.   

Happy Friday, 

Just a little fun on a Friday.  Jacksonville has some unusual street names.  I am not sure how they came to be, but they are just confusing! 

Boulevard Street

Alley Road 

Highway Avenue 

NoRoad 

 2nd Ave N & 2nd St N  not to confused with 2nd Ave S & 2nd St S which are 4 blocks apart in Jacksonville Beach.  Sadly this is not the only examples of this insanity.

I own a house on 2nd street circle which is not connected to 2nd street - about 2 blocks away.  Which is not to be confused with the example at the beach.

I own a house on Red Robin Drive, which is next to Christopher Robin Drive which intersect Miss Muffet, Little Boy Blue and Goldilocks. 

Camaro Drive West connected to Camaro Drive E in a circle.  Next to Chevelle, Fury and Barracuda

Birdville- The locals hate that name - Canary Rd, Dove Road, Blue Bird Road 

Kings, Old Kings and New Kings intersect in multiple places 

 Strato Road, Strato Road North, Strato Road West and Strato Place.  Yes they all connect and yes they use the same numbering.

Cheers

I rented 2 properties in April and have 2 more that will drop this week.  I am seeing a great deal of interest from teants.  Jacksonville has not been hit as hard as many other places, which could contribute to the rental market.

One is in a B neighborhood and the others are in a C.  

The numbers are in for Jacksonville's market in April.

You can look at them in 2 ways and I think they are both applicable.

Year to date and monthly performance.

We are behind 2019.  Independent of current circumstances, '20 was forecasted to be weaker than '19.

If you look at month to month, we are relatively stable.  Indicators both up and down.  It was a comparable month to January.  This was not the train wreck most people thought it would be.

I am curious how May goes?

My prediction...As the country wakes up and comes back, May will look similar to April's performance.  It will start off slow and pick up momentum toward the end of the month.

Who else is ready to make a prediction relative to April?  

UP, DOWN OR FLAT? 

Wow Thanks! 

I just rented one of my properties in Jax and have gotten a ton of interest in my other 3 vacancies.  I have been extra careful to only pick the best tenants at this moment.  There are still people moving in Jacksonville.  

You make a great point about office RE.  This was is the great dry run for virtual.  There will always be a need for some office space, but will it be as large?  The per square foot per employee has been trending down.  Hoteling and shared space is going to take off.  The issue is most leases are long term and the real impact is in the future when the leases are not renewed.  The other big drop in office will be when this generation goes into the workforce.  It was acceptable to hold holidays with grandma on line, why not work that way?  

As of Monday, I should have all rent for this month.  I was already told by one tenant that he wil not be working this month and will most likely not pay rent.   So far so good keep my fingers crossed.

A month ago, not one would have guessed we are in the situation we are in.

Considering the unthinkable, A troubling thought occurred to me:

What will people do if they can not do a cash out refi? The BRRR model does not work without refi. You will most likely be able to get your loan converted to long term and/or get a loan for what you have in the house. For the business to continue we need a current market appraisal and 75 - 80% ltv.

I personally have 4 properties that would face this problem

1.  Owner finance on a property that is due in 1 year.  I have about 10k in reno and the house is worth significanly more than I owe.

2.  I have renovated a house I own free and clear - Probally the most cash tied up in one place

3.  2 Hard money loans renovation loans due in January.

For me, and most people, to get to the next level I need current appriasals and cash out at 75% or I quickly run out of cash.

I expect they will come back at some point, but what if it takes 12 months to roll out?