Property Report: Jacksonville (Our First Property)

Summary: This was the first property we ever bought. It’s trite, but getting your first rent check is an amazing feeling. It’s hard to not want more and more of them.

I liked Jacksonville because the population was growing, properties were seeing nice appreciation, rent growth looked solid, and you could find a lot of properties that met the 1% rule. I wanted to find something turnkey since it was my first property and buying site-unseen in a market thousands of miles away was intimidating enough. This property checked that box. There was a tenant already in place at market rent and most of the mechanicals and the roof had recently been replaced.

Property Type: SFR – 3 bed, 2 bath, 1,300 sq ft

Purchase Date: April 2017

Deal Details:

  • Purchase Price: $84k
  • Current Estimated Value: ~$100k
  • Cash Invested (Down payment + closing costs + make ready – cash out refi’s): $22,491 $16,888
  • Rent at Purchase: $927/mo
  • Current Rent: $1,032/mo
  • How We Found This Property: Roofstock

Yearly Cash Flow (after all expenses):

  • 2017: $2,535
  • 2018: $2,269
  • 2019: $3,457

Updates/Lessons Learned:

1. It was not easy to pull the trigger and buy a property remotely, not to mention on the first property I ever bought. A lot of people thought I was crazy for doing it (they still do… and who knows, maybe they’re right). In the end, I just took a leap of faith and knew that if it all came crashing down, losing $25k would suck but I’d be fine in the grand scheme. So I guess the lesson I’m trying to get across is don’t think that your first property will make or break you. Hopefully you have a long investing career ahead of you and your first property will just feel like a stepping stone.

2. We did a very small cash out refi at the beginning of 2020. Rates had dropped about a point from when we had purchased this one and properties across Jacksonville had seen some nice appreciation over the last couple of years. Unfortunately, the appraisal came in WAY lower than I was expecting, so we were only able to cash out ~$6k. If you ask most investors, it wouldn’t even be worth doing a cash out refi at that amount. But since we were able to refi a lower rate, pulling cash out wouldn’t even affect our monthly payment so it felt like a “why not” at that point. Big takeaway here: don’t blindly trust Zestimates. Talk to an agent or someone who knows the area well who can tell you what they think your property is really worth before you go to the bank.

 

This post was last updated November 2020.

 

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