Jacksonville, Florida Hard Money Lender
Florida Private Lender Loan Terms
Florida Rehab Loan
Location: Jacksonville, FL
Purchase Price: $ 60,000.00
Reno Amt: $ 10,000.00
Loan Amt: $ 52,000.00
Actual Term: 5 mo.
Refi Amount: $ 80,000.00
Net Cash Flow: $ 375.00
This is a perfect example of a BRRRR strategy loan. This investor bought a decent property at a great price! It did not need a lot of work, basically cosmetic on the interior and exterior. They immediately turned around and refinanced 5 months later after placing a tenant and proving income.
Small changes equal big cash flow
As you can see our client did not do much to the exterior. They simply painted the existing shutters and added a few shutters. They also bought affordable blinds and had them installed in all the major windows. This is critical for happy tenants. Tenants want privacy and by having blinds already installed you increase the attractiveness of potential tenants to your rental properties.
Fresh coat of paint and Grout Cleaner
Sometimes all that is needed is a fresh coat of paint and grout cleaner. Florida is notorious for tiled floors. This is helpful for the longevity of your property considering the added wear and tear that comes with sandy soil. However one of the biggest downsides is the grout. Grout can become dingy and even black if not maintained and regularly cleaned. Investing a few dollars into a steam cleaner and grout solution can go a long way in making your rental rent ready.
Cut costs on the renovation by recycling
Recycling not only applies to consumer goods, but also to items you find during your renovation that can be added to repurposed in your finished product. This includes trim work, and even painting “contrast walls” or items within an existing structure such as brick or shutters. Having an open eye to find the mundane to bring to life will not only add perceived value in the eye of the beholder but also increased rent, due to that perceived value.
Know the difference between wants and needs
Kitchen renovation is often expressed in complete gut jobs, with modern and trendy cabinets and appliances. However in a BRRRR sometimes your best bet is to know who your end target audience is and then evaluate your current setup. In this case, the target audience was a long-term renter (LTR) who was not focused on upscale appliances and marble countertops, with the latest trend in cabinets. They would simply want functionality and affordability. Know who your target audience is and complete the renovation of your BRRRR to suit your audience, not your personal taste.
Cost effective way to improve your rentals
As previously mentioned, Florida is notorious for having tile flooring throughout the entire house. This means of flooring accomplish an end of minimal maintenance and the longevity of your property. However adding carpet to the bedrooms, can bring warmth and comfort to a sometimes sterile and cold environment. Consider adding carpet to your tenant’s bedrooms to increase the tenant's desire to be in their home, your property.
Are you looking for funding on your next Florida real estate deal? Why not work with a Florida Private Lender!
Are you interested to see what loan programs Blue Bay Capital has to offer? We fund Fix and Flippers, Builders, and Wholesalers!
