E26. JWB's Property Of The Week - Brand New Construction & $1,724 In Monthly Rent
Not Your Average Investor Show
English - September 30, 2020 10:00 - 1 hour - 44.8 MBInvesting Business Entrepreneurship rental property investing jacksonville real estate real estate investing Homepage Download Google Podcasts Overcast Castro Pocket Casts RSS feed
This week's featured property...
- Generates a 10%+ estimated return on investment (not incl property appreciation)
- Collects an avg monthly rent of $1,724 (which goes up in future years)
- Has low property insurance costs which boosts your positive cash flow!
Gregg's teaching points:
- This is a NC house in an established neighborhood with homes built in the 80's....why?
A: This is JWB's niche. Infill builder. We buy the lots that have problems with them and turn them into cash flowing rental properties. Too small for the big builders, too big of a job to do for most real estate flippers because they don't know how to build houses.
- There was a house on it when JWB bought the property originally but it was torn down...what happened?
A: Great example of the risk you take if you're an ACTIVE investor. When we bought this property, we expected to renovate it. We even started to renovate it and then found out that there were unforeseen issues that blew our renovation budget. We then pivoted to turn it into a brand new construction home. If you're an ACTIVE investor and that happened to you, it would've resulted in a major loss. By investing with JWB, we assume all of the construction risks.
- Importance of signing long-term leases and renewals. How does JWB save clients an avg of $5,406 each year?
A: A normal property management company would sign a 1-year lease and they don't have an incentive to renew your resident so they don't focus on it. If your resident leaves after a 1-year lease, these are the costs coming to you:
$1,724 - Tenant placement fee
$2,000 - Avg property turn renovation cost
$1,682 - 2 months of mortgage payments while vacant
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