Tips on areas to invest in Jacksonville

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Tips on areas to invest in Jacksonville

Alexander Celestina
Member since 2021 路 15 posts 路 5 votes

Hi Everyone,

My name is Alex, I am a new investor and I am looking to invest in Jacksonville, FL. I started doing research on different zip codes in which to use the BRRRR strategy. I was hoping if anyone had feedback on the best zip codes to invest in. What areas would you consider Class B, C, and D neighborhoods? I noticed that 32209 and 32206 had potential as far as price and rent ratio, but I don't know if those zip codes where there is a lot of inventory are in Class C or D neighborhoods.

Thank you,

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Andres Rodriguez
Wholesaler 路 Jacksonville, FL 路 Member since 2019 路 74 posts 路 42 votes
2y

Hi @Alexander Celestina
Have you considered Palatka (32177)? It's about 45 minutes south of Jacksonvile, but you avoid the headaches of D Class zip codes. The acquisition costs are usually less than Jacksonville's, but the rents and appreciation are almost on par. It's a nice, clean, small town, and several residents work in St. Augustine but choose to live in Palatka due to the lower cost of living. 

32208 is another good investment zip code in Jacksonville, but be mindful of flooding issues if the property is close to the Ribault River. 

I hope this helps!

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  • Basit SiddiqiBusiness Member
    Accountant 路 New York, NY 路 Member since 2015 路 8k+ posts 路 3k+ votes
    3y

    Anything that has an attractive price in 32206 or 32209 is either in a D class neighbhorhood and/or a property that needs significant rehab.

    The further you go from the center of downtown, the more likely the property is in a better class neighborhood.

    The exception being springfield where it is close to downtown but considered a good neighborhood.

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  • Alexander Celestina
    OP
    Member since 2021 路 15 posts 路 5 votes
    3y

    @Basit Siddiqi

    Hi, thank you for your reply. I noticed that Springfield was a nicer neighborhood and it is a historic community. A lot of the properties below $100k I saw looked like in locations that were in pretty bad shape.

    0Reply
  • KC Pake
    Investor 路 Orange Park, FL 路 Member since 2019 路 171 posts 路 108 votes
    2y
    Quote from @Alexander Celestina:

    Hi Everyone,

    My name is Alex, I am a new investor and I am looking to invest in Jacksonville, FL. I started doing research on different zip codes in which to use the BRRRR strategy. I was hoping if anyone had feedback on the best zip codes to invest in. What areas would you consider Class B, C, and D neighborhoods? I noticed that 32209 and 32206 had potential as far as price and rent ratio, but I don't know if those zip codes where there is a lot of inventory are in Class C or D neighborhoods.

    Thank you,

    Hi Alex,

    Welcome to the exciting world of real estate investing! It's great that you're already digging into the details and considering the BRRRR strategy. Jacksonville can be a promising market.  For the past few years, there has been consistent and rapid growth in the Jacksonville area.

    When it comes to Class B, C, and D neighborhoods, it's important to note that classifications can vary, and it's not always solely based on zip codes. However, your observations about 32209 and 32206 having potential in terms of price and rent ratio are a good start.  

    Don't forget to look in the areas surrounding Jacksonville.  Several emerging neighborhoods present excellent opportunities, with 32204 and 32068 currently being standout, high-demand areas.

    Best of luck with your search!
    0Reply
  • Ali Nichols
    Investor 路 Member since 2022 路 235 posts 路 127 votes
    2y

    @Alexander Celestina are you targeting small multi-family or SFH?

    0Reply
  • Liam Maher
    Miami, FL 路 Member since 2022 路 60 posts 路 39 votes
    2y

    Hi @Alexander Celestina here's a gentrification map I made for Jacksonville. The bubbles you see are properties, and the % relates to the property's Cash on Cash Return 馃槉 

    3Reply
  • Alexander Celestina
    OP
    Member since 2021 路 15 posts 路 5 votes
    2y

    @KC Pake, 

    Thank you for your input! I will definitely check out those other neighborhoods. When I started researching 32209, I realized that there were certain pockets that had those good deals. I was using Google Street to get an idea of the neighborhood and looked like the neighborhood itself was in bad shape. I want to avoid headaches that Class D brings.

    1Reply
  • Alexander Celestina
    OP
    Member since 2021 路 15 posts 路 5 votes
    2y

    @Ali Nichols

    Hi Ali,

    My thoughts were to start with a SF and go through the process of the BRRRR and then move on to small multifamily as that is what I want to focus on.

    1Reply
  • Alexander Celestina
    OP
    Member since 2021 路 15 posts 路 5 votes
    2y

    @Liam Maher  
    Hi Liam,

    That's great! Thank you for sharing this.

    0Reply
  • Andres Rodriguez
    Wholesaler 路 Jacksonville, FL 路 Member since 2019 路 74 posts 路 42 votes
    2y

    Hi @Alexander Celestina
    Have you considered Palatka (32177)? It's about 45 minutes south of Jacksonvile, but you avoid the headaches of D Class zip codes. The acquisition costs are usually less than Jacksonville's, but the rents and appreciation are almost on par. It's a nice, clean, small town, and several residents work in St. Augustine but choose to live in Palatka due to the lower cost of living. 

    32208 is another good investment zip code in Jacksonville, but be mindful of flooding issues if the property is close to the Ribault River. 

    I hope this helps!

    3Reply
  • Bob S.
    Real Estate Consultant 路 Cleveland 路 Member since 2020 路 6k+ posts 路 3k+ votes
    2y
    Quote from @Alexander Celestina:

    Hi Everyone,

    My name is Alex, I am a new investor and I am looking to invest in Jacksonville, FL. I started doing research on different zip codes in which to use the BRRRR strategy. I was hoping if anyone had feedback on the best zip codes to invest in. What areas would you consider Class B, C, and D neighborhoods? I noticed that 32209 and 32206 had potential as far as price and rent ratio, but I don't know if those zip codes where there is a lot of inventory are in Class C or D neighborhoods.

    Thank you,


    100% would not touch anything in FL most of it assume this area as well is way overpriced, Correction is coming. I live in FL and dating one of the biggest brokers in S Fl, she agrees as well. If you're lucky you will get 3% ROI, why bother. and very likely you will be upside down in a year or so,

    0Reply
  • Barbara Correal
    Member since 2023 路 1 post 路 1 vote
    2y
    Quote from @Liam Maher:

    Hi @Alexander Celestina here's a gentrification map I made for Jacksonville. The bubbles you see are properties, and the % relates to the property's Cash on Cash Return 馃槉 

    What an interesting map you created,is it interactive?  are you willing to share the file with me? 

     
    best wishes

    1Reply
  • Liam Maher
    Miami, FL 路 Member since 2022 路 60 posts 路 39 votes
    2y
    Quote from @Barbara Correal:
    Quote from @Liam Maher:

    Hi @Alexander Celestina here's a gentrification map I made for Jacksonville. The bubbles you see are properties, and the % relates to the property's Cash on Cash Return 馃槉 

    What an interesting map you created,is it interactive?  are you willing to share the file with me? 

     
    best wishes


     Sure thing, just sent you a message!

    0Reply
  • Karen Ning
    Member since 2020 路 6 posts 路 0 votes
    2y

    Hello @Liam Maher
    Is it possible to share the map as well? 
    I am looking at the pocket/zipcode 32206 to potential to flip.  

    0Reply
  • Calvin Drake
    Wholesaler 路 Jacksonville, FL 路 Member since 2023 路 15 posts 路 5 votes
    2y

    It's a balance! Some of the zips with better cash on cash returns are going to also be the ones with lower level neighborhoods.

    0Reply
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