All Forum Posts by: Mitchell Morgan

If any GCs are available early this week to walk the 3/2 SFH I have under contract, there is still time to submit a bid for the fix and flip. Send me a message if you are interested or have any questions.

If anyone reading this knows a good GC in Jacksonville, I would love the referral.

Our inspection period has been extended for a week, so if any general contractors are interested in bidding on the project there is still plenty of time to get you a walkthrough of the property.

I have a property under contract in Jacksonville 32219, and I am looking for a general contractor to help with the required rehab work. This deal will be a flip and we have a week left in our inspection period. The four-point, general, well, septic, and WDO inspections have all been completed and I have all the reports. The rehab work is cosmetic in nature.

Ideally the contractor would be able to walk the property early this week to send a bid by Wednesday, and be able to provide references to previous clients.

If you are interested please send me a message and we can discuss further details and answer any questions. If anyone has a GC they can recommend please don't hesitate to send me a message, I would greatly appreciate the referral.

Thank you!

Have you looked into shipping containers?

Personally, I think it's an incredibly interesting idea. The concept is to convert one or more shipping containers (the containers transported on the decks of those massive cargo ships) into a home. There are tons of examples of these container homes online plus info about the conversion process. Some contractors even specialize in converting containers into houses.

Wow I sound like a container shill. I've not built one before, I just think it's a cool idea. Check it out, maybe it could work for your property.

Hey Austin!

I'm also currently looking for a value-add house hack in Jacksonville. You mentioned school so I assume you're looking in the area near UNF? Send me a dm if you're interested in connecting, I'm always up to meet and talk with other investors.

These are my thoughts:

1.) My initial plan was to look for a small MFH (duplex, triplex) or a SFH with a large detached garage that could be converted to an ADU.

2.) But after speaking with others I'm starting to think that the ADU conversion may be more trouble than it's worth. On paper the idea seems perfect, but here are some potential issues.

-The newly converted ADU may not be able to be permitted (or a permit won't be approved before the rehab starts).

-Unless the garage already has electric and water connections, that's an important and expensive item in the SOW. Similarly, it's almost guaranteed not to have a sewer connection which would need to be added as well. 

-Those utilities will be connected to the main residence unless you get new separate meters permitted and added.

-Depending on the property and ADU, after you move out it may be difficult to rent the two units separately. One example, if the main residence is a 4/2 then your tenant avatar is going to be a family. A family with young children is unlikely to be comfortable having a stranger living in their backyard.

3.) Agents and lenders I've spoken with have mentioned the possibility of a 203K loan, but my understanding is that they are a huge PITA and slow. 

My plan, depending on the condition of the property, will be either a conventional 5% down loan or a fix-and-flip loan. In both scenarios, I will use the equity in my first rental via HELOC to either cover the conventional loan's down payment and fund the rehab or to fund the hard money down payment and meet the reserve capital requirements. Then refinance afterward.

4.) I really think permitting will control the possibilities for ADU conversions. But I could definitely see myself living in a 400sf converted detached garage for a year.

But again those are just my thoughts and any advice from experienced investors will likely help us both to figure things out. Hopefully, someone who has gone through the ADU conversion and permitting process will see this post and share their experience.

Thank you for the reply Jorge, I'll send you a message to connect.

Thanks for the reply Elenis. ADU's seem like such a great idea until looking at zoning and permitting.

Can a landlord rent a primary structure and an ADU separately? I am finding conflicting information about whether or not this is allowed in Jacksonville, Florida.

I've found info stating that the owner must live in one unit and rent the other, or must rent both units to the same tenant, and the two units cannot be rented separately to two different tenants. But I've also found posts on BP saying it's fine to rent them out separately. 

It would seem strange to not be able to rent them out separately as that seems like the whole point. 

Thank you in advance!

Hey Venus, I'm new to Jacksonville and BP, and also would love to connect with other investors in the area. I'll send you a message to connect and good luck!

Quote from @Basit Siddiqi:

Most of the multi-family units in Jacksonville that I think are in an area that I would feel safe are in riverside/5 points or San Marco.

The issue, I think, with Jacksonville is that the supple of Multi-family units is low which makes the pricepoint of them higher.

Thanks Basit. You're right and from what I've seen, most of the multi-family popping up on the MLS are in or around 32209, or pretty far from the city to the northwest. I think my best bet is going to be to add value to a SFH through rehab. 

I haven't had any luck with the BP Agent matching tool so far, so if anyone knows an agent knowledgeable in buying distressed properties who is looking for work I would love to connect with them.