Rental Property Investor · HI · Member since 2020 · 4 posts · 2 votes
Hello everyone! I'll be transitioning out of Hawaii to either Yuma, AZ or to the Jacksonville, NC area by summer '21. I'm currently looking into house-hacking a small multi-family property - best part is that my wife is slowly beginning to realize the huge benefits that house hacking offers. My question is simple (maybe), which market offers more benefits than the other when it comes to multi-family properties? In other words, which market offers the most bang for the buck?
I would be using a VA Loan so I don't foresee financing being an issue.
Full disclosure, I'm a long time BP podcast listener but this is only my first post on here. If there is any additional information I need to include, please let me know.
Any help, support, or advice would be greatly appreciated!
As another investor in Eastern NC I can tell you that small multi-family are very hard to find, everywhere from Swansboro down to the SC stateline. I am constantly on the lookout and they are just few and far in between. The few neighborhoods in Jacksonville with duplexes are....less than ideal. Wilmington has some, but they tend to very old (think 1930s or earlier) and pretty expensive because they are near the river.
The one place that has a good inventory of duplexes/triplexes is New Bern. However, your commute to base will be pretty long, the town doesn't have much to offer (neither does Jax really, but you are closer to the beach and to Wilmington), and most importantly, its an area of flat or even declining population growth and a very low appreciation market.
My recommendation would be to find a an SFR somewhere between Sneads Ferry and Northern Wilmington and maybe do some live-in upgrades. The appreciation is fantastic in that area and is only going to improve and the rental rates you can get when you move on from the home will dwarf anything in Jacksonville. Hit up @Sean McDonnell for a local investor and realtor (former Marine), who specializes in finding investment properties, particularly for military investors.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
Hi @Xavier Garcia, I'm not familiar with either area, but you could use BP Insights to check out both. There are lots of other factors besides cash flow that should be taken into consideration when choosing a market so think about landlord/tenant laws, growth (jobs and population), etc.
Real Estate Agent · Arlington, VA · Member since 2017 · 98 posts · 50 votes
5y
I can't speak for Yuma, but Jacksonville has a good number of multi-family properties in town. It really would just be a matter of finding one that's for sale (or convincing the owner to let go of their property). It's also a solid community in terms of amenities and proximity to other fun things (Wilmington, Raleigh, etc). It also has a constant supply of renters due to the bases nearby.
Investor · Jacksonville, NC · Member since 2018 · 38 posts · 12 votes
5y
Hello @Xavier Garcia. I live in and invest in Jacksonville and currently there are no multi-families for sale on the MLS, so you would have to find a deal off-market. The area is primarily SFH but there is good potential here depending on your goals. If you'd like to connect and discuss Jacksonville further, just let me know! Good luck!
Contractor · Raleigh, NC · Member since 2020 · 37 posts · 14 votes
5y
@Xavier Garcia as Tyler mentioned, Jacksonville has a low inventory of small multi-families. I grew up there so if you have any questions about specific neighborhoods feel free to reach out. Also, I'm hoping you do not end up in Yuma! Good luck!
Yuma, AZ · Member since 2020 · 31 posts · 12 votes
5y
@Xavier Garcia
Hi! I live in Yuma. There aren't as many multi family properties as other parts of the country (I'm originally from Midwest). They do exist, and are typically not in the best neighborhoods compared to SFR in this city. There are properties that have mother in law suite additions that could work.
As another investor in Eastern NC I can tell you that small multi-family are very hard to find, everywhere from Swansboro down to the SC stateline. I am constantly on the lookout and they are just few and far in between. The few neighborhoods in Jacksonville with duplexes are....less than ideal. Wilmington has some, but they tend to very old (think 1930s or earlier) and pretty expensive because they are near the river.
The one place that has a good inventory of duplexes/triplexes is New Bern. However, your commute to base will be pretty long, the town doesn't have much to offer (neither does Jax really, but you are closer to the beach and to Wilmington), and most importantly, its an area of flat or even declining population growth and a very low appreciation market.
My recommendation would be to find a an SFR somewhere between Sneads Ferry and Northern Wilmington and maybe do some live-in upgrades. The appreciation is fantastic in that area and is only going to improve and the rental rates you can get when you move on from the home will dwarf anything in Jacksonville. Hit up @Sean McDonnell for a local investor and realtor (former Marine), who specializes in finding investment properties, particularly for military investors.