Hey BiggerPocket Folks!
Hope everyone is have a great weekend.
I've been exploring the multifamily landscape in the Jacksonville Florida market and have interest in purchasing small low income multifamily properties (2-4 units). The cash-on-cash return is very appealing and the entry cost is obtainable for me at this time - roughly $150k per 4plex. Unfortunately though, the supply appears to be rather limited in the Jacksonville area and most of these properties are located in what appear to be questionable neighborhoods - class D. I'm based out of state and would be relying on a property management company to handled the day-to-day.
Would anyone with experience in Jacksonville be able to provide some insight?
Is 32209 an ok area to purchase investment properties in?
Any recommendations on property management companies that handled this area would be greatly appreciated as well.
not really no 32209 is not ok. It is in the news alot. There are a few duplex triplexs on tax deed lands available lists in 32209. There are many boarded up houses in 32206,08,09,19,and 54. The post tax deed auction list of Lands available is my favorite acquisition but most of it is in these zip codes. Except we bought 3 in 10, 21 and 44. My co-worker grew up in 32209 and said the streets with flower names are ok. 06 has its good parts in Springfield 08 has its good areas toward Trout River, 19 has its good parts in rural western by 20. I have 29 years in the post office and have lived here since 1975. Jacksonville has 30 plus residential zip.codes. to keep it simple I tell out of area investors to stick to the Jax 322 zip codes that border the 320 zip codes by 1 or 2.West of the river will be less expensive than east of the river going toward the ocean. My favorites are 05, 10, 20, 21,22, 34 44 because I grew up west of the St Johns river and know it better. A long time investor said you should be looking for the 2% rule and depreciation in those areas. If you pay 150k it should bring 3k a month in rents Because appreciation wont be so much on your side.
@Chris Wilson @Ryon Bourdon
Chris, Ryon moved here to invest in multifamily. He isnt on BP hardly ever. Would you like his contact info? He has a few investors looking to go in on it when the market slows down. I am pretty impressed with this young man. He worked and saved and moved here to specifically look for Multi Family. He got his realtor license and will make his way to being a commercial realtor where the Multi Family action is more accessible. He has tunnel.vision for multi family.
@Chris Wilson 32209 is one of the worst zip codes if not the worst in Jax. Jax is also notoriously spotty even in the same zip let alone a couple of blocks away. I don’t know any manager that will do that small but I would avoid that area all together.
Thank you for your insight @Carolyn Morales @jayhelms @ChrisGrenzig
For starters, the proerpty(s) that I've been looking at do not meet the 2% rule - total rents are $2k per month and the purchase price is roughly $150k. Are there any multifamily properties in Jax that meet this guideline?
My approach was to purchase and convert the building to all HUD tenants for guaranteed and timely rent payments and so long as a property management company would handle the day-to-day it would be a fairy sound investment.
I'm very new to investing so my approach is likely not the best route.
@Chris Wilson why not Baltimore? I haven't studied the market much, but from what I've heard, there is a lot of opportunity there.
@toddexheimer I have plans to relocated in the next 3-5 years to Jacksonville. There also no income tax, reasonable property tax, and I also have a very bullish outlook on the Jax market due to the new development projects currently underway and the planned Shad Khan shipyard/entertainment district.
Thanks for this information @Chris Wilson . I'm new to REI and i'm looking into the Jacksonville Area. This post helps a lot!
Is 32209 an ok area to purchase investment properties in? Search for Moncrief in Jacksonville and you will have found 32209.
Its a warzone. Do you want to own properties in an area that is mostly HUD tenants? There is a reason the prices are dirt cheap. Just know what you are getting into there. Happy to help with other areas of Jax too.
If you are looking to move to Jax, look at Springfield or Riverside, these are close to the Sports Entertainment District. Riverside is the hottest zip code for millennials in all of Florida.
Let me know if you need more info.
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