Jacksonville FL market...still viable?

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Jacksonville FL market...still viable?

Leah N.
Member since 2018 · 6 posts · 11 votes

I've been perusing BP for a while but today is my first post. Awesome community!

Living out of state but considering starting my RE investing in the Jacksonville FL market (family lives in the NE FL area and could check on property, etc) as a turnkey property as I work full time and have limited time outside of work due to family constraints. Is this still a viable market for rentals if looking more for CoC returns?

I've heard JWB is one of the major players there, but some of the recent reviews on BP are a little concerning. Anyone do a deal with them recently? Experience?

Open to any other recommended TK providers in that area as well...Thanks!!

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Jeff Grove
Lender · Tampa, FL · Member since 2019 · 21 posts · 15 votes
7y

Actually, I have a way we can all get a feel for neighborhoods or parts of a metro area that might better than others...In the Tampa market, this is a pretty good representation. I'm constantly looking at low/moderate census tracts because working for a bank, we earn CRA credit when people purchase in these areas. The link below will show you a map of the US. You can zoom in to whatever area you want to look at. Basically, anything in dark purple are your lowest income areas. The light shade purple is a moderate income area. Anything that isn't purple is either 'middle' or 'upper' income areas. Perhaps you can use it as a tool to cross-reference any additional research you're doing...Let us know if this represents your area pretty well or not...

https://www.policymap.com/embedmap_dyn?lqid=59216

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  • Jack Bobeck
    Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes
    6y

    @Emma Fitzgibbon I would recommend that you look at the Northeast Florida MLS, they have great data on the average sales for areas and neighborhoods around NE FLorida. Its the BEST place to start! 

    0Reply
  • Jack Bobeck
    Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes
    6y

    @Ezra Sitt I would recommend that you speak with my friend at OSCO Realty, Sid Jones. He does a great job with Commercial MF. He is a great guy and also knows all about options around town that are not on the market. 

    0Reply
  • Ezra Sitt
    FL · Member since 2013 · 14 posts · 3 votes
    6y

    @Gregg Cohen Thanks for the insight. Yes that would be great, I will touch base with you via DM.

    @Jack Bobeck Appreciate the referral. I will reach out. 

    0Reply
  • Gregg CohenBusiness Member
    Rental Property Investor · Jacksonville, FL · Member since 2011 · 143 posts · 136 votes
    6y

    @Ezra Sitt - We focus on 4 neighborhoods in Jacksonville - Westside, Northside, Arlington and Southside.  Prices are typically between $150k-$210k and you can get positive cash flow.  Below middle income is what you are shooting for the sweet spot of positive cash flow in a neighborhood that has significant rental demand.  Jacksonville’s avg historical appreciation rate is 4.3% per year and all are expected to grow at that pace if you hold for a full market cycle.  Specifically, the westside has a lot of townhome opportunities.

    904-677-6777
    Gregg Cohen, Not Your Avg Investor Show4.6237 Reviews
    WebsiteView Page
    2Reply
  • Ezra Walters
    Real Estate Investor · Jacksonville, FL · Member since 2015 · 2 posts · 1 vote
    6y

    Thanks Greg, but I am looking for investment properties starting north of Fort Pierce on the east coast, and north of Punta Gorda on the Fort Myers on the West Coast. 

    1Reply
  • Emma Fitzgibbon
    Member since 2019 · 50 posts · 18 votes
    6y

    Thanks for the input everyone

    0Reply
  • Kaleshia Holmes
    Member since 2019 · 1 post · 0 votes
    6y

    Hi @Gregg Cohen.  I'm currently in the Jacksonville market looking to purchase my first multifamily unit.  Do you have any experienced multifamily agents that you can recommend?

    0Reply
  • Virginia Houston
    Real Estate Broker · Jacksonville, FL · Member since 2020 · 40 posts · 27 votes
    6y

    Hi @Kaleshia Holmes I have a great one, I’ll PM you. 

    Anyone else interested, feel free to PM me as well. 

    0Reply
  • Travis M.
    Member since 2020 · 37 posts · 32 votes
    6y
    Originally posted by @Gregg Cohen:

    @Ezra Sitt - We focus on 4 neighborhoods in Jacksonville - Westside, Northside, Arlington and Southside.  Prices are typically between $150k-$210k and you can get positive cash flow.  Below middle income is what you are shooting for the sweet spot of positive cash flow in a neighborhood that has significant rental demand.  Jacksonville’s avg historical appreciation rate is 4.3% per year and all are expected to grow at that pace if you hold for a full market cycle.  Specifically, the westside has a lot of townhome opportunities.

    Hey Gregg, what are your thoughts on the Northeast Arlington area? It seems like the new(ish) corridor to the beach could be a big driver for appreciation up there, but that we haven't seen allot of it yet. 

    0Reply
  • Gregg CohenBusiness Member
    Rental Property Investor · Jacksonville, FL · Member since 2011 · 143 posts · 136 votes
    6y

    Hi @Travis M., I love Arlington to buy and hold.  You can get positive cash flow in a below-middle-income neighborhood where we love to do the property management.  The only issue is that a lot of investors love it as well so it is harder to find properties there in today's real estate market.  We have to create our own inventory by building new construction because there just isn't a lot of existing inventory.  As far as appreciation goes, I'm all about the long-term.  I just bank on holding onto the houses for a full market cycle (10-20 years or longer) and then I should be able to get a little over 4% appreciation per year on average.  Anything more than that would be a bonus.

    Hi @Kaleshia Holmes - sorry for late response...I just saw your question.  I don't have a specific multi family agent to recommend for you.  However, if you're interested in investing in town homes, I can help.  By investing in town homes you receive a lot of the same benefits that you would get by investing in multi-family as well as additional advantages when it comes to financing and flexibility of the disposition.  Just let me know if you'd like to connect.

    904-677-6777
    Gregg Cohen, Not Your Avg Investor Show4.6237 Reviews
    WebsiteView Page
    0Reply
  • Ezra Walters
    Real Estate Investor · Jacksonville, FL · Member since 2015 · 2 posts · 1 vote
    6y

    Any property managers on this string, I would like to work with a property manager for my properties, and also to see if they have any properties for sale. Please let me have your contact if you are a property management company. (904)514-8403

    0Reply
  • Charles A.Pro Member
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    6y

    @Leah N.

    We stay away from Northside and Arlington.

    Trulia has a crime map that's super helpful especially for out-of-state investors.

    Plug in any address anyone is trying to sell to you and take a look at the color coded heat maps.

    If you see mostly dark blue,run.That means vacancies and turnover.That WILL eat whatever pro-forma CoC they project for you.

    Arlington is mostly dark.

    Multifamily is available in the historic neighborhoods and the beaches.

    Multis is all we buy.

    If you don't mind buying houses built in the 1930s-1950s,you will see duplexes and quads in Jacksonville that beat returns on any "turnkey" SFR with much less vacancy risk.You just need to know what you're doing.

    I've lived and invested in Jacksonville for 10 years.

    1Reply
  • Gregg CohenBusiness Member
    Rental Property Investor · Jacksonville, FL · Member since 2011 · 143 posts · 136 votes
    5y

    Hi @Charles A. - I just searched Trulia's crime maps and outlined the Northside and Arlington neighborhoods that my clients and I have been investing in since 2006 here in Jacksonville.  You'll notice that the Northside and Arlington have a relatively low amount of darkest blue but do have some areas of the lighter blue.  This is the reality of investing in single-family rental properties if you want to produce positive cash flow in a growth market like Jacksonville.  

    If this is the right model for you, you have to be comfortable investing in below middle income neighborhoods.  The truth is crime happens in every neighborhood.  We just stay away from violent crime areas but are realistic that crime does happen in some of our neighborhoods.  The great thing is we've proven that you can perform property management services that promote long-term resident stays in below middle income neighborhoods and that's why this investment works so well.  We sign 2 and 3 year leases and renew 70% of our residents who come up for renewal which leads to an avg duration of resident stay of 54 months. 

    Financing and appraisals are typically much easier for single family than multis.  And you can make a strong argument that there is more upside potential for single family than multis based on expectations of home prices going up 8-10% in 2021 vs 2020.  

    I do like multi family investing as well. It's just hard to find it in neighborhoods where you can earn a decent ROI from the rental income. Not sure which historic neighborhoods you're referring to but prices in Springfield and at the beaches are typically too high to justify it.

    904-677-6777
    Gregg Cohen, Not Your Avg Investor Show4.6237 Reviews
    WebsiteView Page
    2Reply
  • My Nguyen
    Member since 2022 · 32 posts · 13 votes
    4y

    @Larry Fried Thank you so much for sharing your experience. Can you recommend the other company that you use?

    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    4y

    The other company is just a property management company - Great Jones.  Well they were, but are now owned by Roofstock.  But after a few years of working with them, I don't necessarily recommend them.  Sorry.

    0Reply
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