All Forum Posts by: Sarah Shockley

Hi @Dena Zeid - Yep! I have 6 properties (14 units) in A and B neighborhoods here in Jax, live entirely off my rental property income, and have been a full-time investor for a few years now. I'm looking for #7 at the moment, but so far haven't had much luck.

I've followed the Jax market meticulously since 2011 when I bought my first house (and am a licensed Realtor), and every year prices go up and inventory goes down, so finding properties has only become more difficult as time goes on. Personally, I'm not willing to compromise on quality of location or on profits earned, so I just wait until the right place comes along.

@Dena Zeid I feel your pain. Yes, the BP community makes it sound easy to find investment properties, but reality is that 99.9% of the properties available on the MLS will not turn a profit of any kind. (and anyone who says differently is probably selling something lol)

Inventory is historically low, demand is high, and the Jacksonville market sees an incredible amount of investor activity - something like 50% of properties sold below $300k are cash transactions. Competition is fierce for any property that could be even remotely construed as an investment. I can't even remember the last time I made an offer on a property and there weren't multiple offers.

Your options are to continue waiting and watching, find creative ways to source properties (auctions, direct mailers, etc) or be willing to accept a lower return.

As for me, I keep making offers, but it does feel like there's always someone who's willing to pay more.

Hi @Ohad Aharon - best of luck with your flip! I've hired Alpha Foundations in the past - better prices than Ramjack usually but I wasn't 100% thrilled with the results.

Foundation repairs can be difficult to diagnose - I kinda wished I hadn't gone with the lower bid, in the end. Sometimes trying to do things cheaply can backfire. Ramjack told me the best way to fix the issue would be to take up all the floors and rebuild the floor joists to get the floor level, but I didn't want to rip up all the hardwood floors. So we went with another method and the floors didn't get leveled as much as I would have liked.

Hi @Stephanie Maisoneuve!

I'll add my 2 cents - I've gotten several federal pacific panels replaced on my properties here in town, and it never cost more than $1000. I can recommend a good electrician if you like.

In my experience this type of dispute would be settled between your agent's broker and the selling agent's broker through an arbitration process. I'm a licensed Realtor in Florida, but I'm not sure what the state-specific regulations would be in this case, though. Are there any licensed Oregon agents/brokers that can weigh in?

Hi @Shella Sanders - looks like your old post is getting revived! Hope your life has changed for the better since then :)

Lots of good recommendations on here already so I'll echo a few and make some additions:

Little Book of Common Sense Investing (John Bogle) - how to make money in the stock market. Good financial literacy info. This should be required reading for all high school students, imo.

Total Money Makeover (Dave Ramsey) - how to get your finances under control, if they aren't already

All Your Worth & Two-Income Trap (Elizabeth Warren) - the intersections of personal finance and government policy - good things to understand if you're a tax-paying US citizen.

Your Money or Your Life (Vicki Roberts, Joseph R. Dominguez) Be warned! This book can ruin you for the ordinary. I can't settle for a conventional life anymore. Just because something is the societal norm, doesn't mean it's "right" or "best." Now you must find your own way.

4-hour Work Week (Tim Ferris) - working more efficiently=getting more out of life

Rich Dad, Poor Dad  (Robert Kiyosaki) - This book opened my eyes to the wonderful world of real estate investing. Gotta give credit where it's due. Just... get the book from the library and don't pay to go to any conferences, etc.

Landlording on Autopilot (Mike Butler) - The best book on how to own and manage rental properties. In the olden days before BiggerPockets there was Mike Butler. Practical, hands-on advice and lots of smart ideas.

@Kameron Holloway I don't recommend buying a MF property anywhere for less than $150k, unless you have another $150k to put into it for renovations. My experience is "You get what you pay for!" That being said, you could get a decent single-family property under $150k in Jacksonville.

Hi @Demetrius Johnson

I'm a local investor and recently flipped a house in Murray Hill that is on a busy road. 

https://www.zillow.com/homes/4617-Post-St-Jacksonville,-FL,-32205_rb/44469776_zpid/?

There are many small reasons why your house hasn't sold yet, but they all influence the price!!

First is location. Like you said, it's a busier road, and also within a section of the neighborhood that isn't the nicest - several large low-end apartment buildings nearby.
4330 Bethwood sold for $136k, and 1127 Randolph sold for $125k and they both have better locations within the neighborhood.  At this point you probably should be clocking in around $115k-$125k.

Another consideration is timing - the market is very slow in November and December with the upcoming holidays - fewer people looking to buy. Agree with what @Charles Whitaker was saying. If you had listed initially around $125k it likely would have sold already. Initial pricing is very important - too high and it'll sit and cost you money. If you list too low it's possible you could leave money on the table, but on the other hand that could lead to a multiple offer situation which could raise the price back up. Murray Hill in general is a very desirable neighborhood, so if you don't have any offers in a week or two, the price is just too high. I had multiple offers and was under contract in less than a week even though my flip was on a busier road than plymouth. But my flip was priced right and also listed in the spring which is ideal.

Now for the house itself - the buyers in Murray Hill who are paying the most are looking for very specific things - basically a charming unique historic home for what is a bargain price compared to nearby Riverside/Avondale neighborhood. IE Riverside taste on a smaller budget lol. So things like charming curb appeal - not "cookie cutter" - hardwood floors - front porch - unique style of some kind. 

Having hardwood flooring is very important. Some of the before photos are appearing in my listing for whatever reason so you can see the bedrooms used to have carpet but I put 2.25" solid oak back in to match what was originally there, and refinished it all. My flip is a historic 1920s bungalow so very important in the rehab to put in materials true to the original style from when the house was built.

Your house is more mid-century so I would have tried to take the overall design in a MCM direction, which is popular with young people in general these days, and specifically hipsters looking to buy a trendy cute place in Murray Hill. If there was hardwood I would 100% repair and refinish it, then done fun sputnik lights, and mid-century tile in the kitchen and bath, etc. Doesn't have to be expensive if you're smart but just overall makes the house unique and stand out.

I like the blue body color on the exterior, (it's kinda mid-century actually) but agree with @Linda S. and @JD Martin - that door color is bad. I'd go with the same cream as the trim just for budget reasons. Also get house numbers with a more modern style and put them over the mailbox  - a modern style mailbox wouldn't hurt either. Overall needs to read "young and fun mid-century" instead of "grandma mid-century." If it was me, I'd source a funky mid-century door from craigslist or facebook marketplace and go with finished wood, or painted a fun coordinating color, but that's a lot of work. And some window boxes the same color and style as the door.

I like the new concrete driveway (I did that as well for my flip) but overall the curb appeal needs a boost. I'd go with landscaping for a budget-friendly update - lots of spikey, modern looking plants and grasses. Maybe a few coconut palms to the left of the front door.

I'd include a basic washer and dryer. Mine weren't in the photos, but I did include a set. At this price point there are lots of first-time buyers so they'd appreciate having a set in place.

Anyway best of luck with your flip! It's easy to sit here and criticize someone else's work, but actually getting out there and doing it takes drive and courage. Here's an attaboy! You'll get there. Just keep on keepin' on!

Hi @Aline Zamora!

I'm a buy and hold investor in Jax and have spent the past 6 years renovating historic buildings for long-term rentals. I love the Springfield neighborhood because of the gorgeous old buildings, and also they have a uniquely strong community that isn't found really anywhere else in town. With that being said, despite looking at property and actively buying on and off for several years now I haven't managed to snag one in Springfield. 

Main reason being - Springfield has started gentrifying in recent years, but many properties are derelict or lacking maintenance during the past when values were lower. These old buildings can take a surprising amount of abuse, but the longer they go without repair, the more expensive the renovations become when they eventually are fixed up.

Most of the "fixer-uppers" on the market would require very ambitious renovation projects easily north of $100k. For this reason I've always bought in Riverside, Avondale, and Murray Hill neighborhoods because the renovations are usually smaller and less expensive, as those properties have generally been better maintained in the past.

Additionally, the skills needed to restore 100-yr-old buildings are often quite different from new construction, so it's very important to hire contractors and trades with extensive experience working on old buildings.

Since prices are up it's difficult to find habitable properties that just need cosmetic work - usually prices are too high for the rental to be profitable. I only see about one or two a year on the MLS that are relatively small projects, but could also be profitable rentals. You may have better luck off-market though.

With that being said I do know of a couple investors who have done multiple projects in Springfield - Mallik Reddy and Michael Trautman. There's a facebook group "Historic Springfield Community" which is quite active and entertaining, as well as being a good place to keep informed. I strongly recommend joining if you haven't already. If you do a search for those names you can see some of the projects they've done.

(Also this thread is quite old and a lot of the information given previously was just plain wrong. Since it's old I'll let it be for now, but if the topic is revived I'll go into more detail later.)

Hi @Ingrid J. - I have bought and sold multiple investment properties in Jacksonville and never felt it was necessary to have a lawyer review the purchase. There are only a few standard sales contracts in use and most are (imo) fairly straight-forward. Although real estate agents are specifically "not authorized to practice law" any agent worth their salt should be able to go through the contract with you, explain everything, and make recommendations regarding how to shape your offer, etc.

However I second @Glen Friedman 's recommendation for Duane Romanello. I have them do my title searches and closings whenever possible. They do top-notch work and are cheap!!