Hoboken, NJ · Member since 2017 · 12 posts · 2 votes
Hi all - I just got into the Bigger Pockets Podcast and it is amazing. A friend of mine and me are interested in purchasing what will hopefully be our first of many properties in the Jacksonville area (we are from NYC). Our goal for our first property, besides getting our feet wet, is to purchase a rental property that will cover the cost of our mortgage, taxes, HOA, if any, and hopefully provide a modest cash flow which could pay for unexpected expenses. Curious to see if anyone is doing the same and finding success.
Real Estate Agent · Orange Park, FL · Member since 2017 · 61 posts · 16 votes
9y
@Michael Carletta Thanks for that tidbit on the podcast! I just saved it on my BP app of shows to listen to next. I've been working my way up from #1 and occasionally listen to the recent podcasts, maybe once a week.
@Ben Strumeier I would also listen to podcast #8 with Al Williamson as he is a guru on building positive landlord/tenant relationships. I found some of his strategies on sustaining those relationships very profound. As you mentioned that you "just got into the Bigger Pockets Podcasts."
Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
9y
@Ben Strumeier I started my out of state REI via a excellent turnkey company in JAX, and have seen very good returns on those properties cash flow and appreciation wise. However I purchase all of them about 4+ years ago, so the prices and returns are much different now, but I think they can still provide some cash flow and continued possibility of appreciation.
Hi all - I just got into the Bigger Pockets Podcast and it is amazing. A friend of mine and me are interested in purchasing what will hopefully be our first of many properties in the Jacksonville area (we are from NYC). Our goal for our first property, besides getting our feet wet, is to purchase a rental property that will cover the cost of our mortgage, taxes, HOA, if any, and hopefully provide a modest cash flow which could pay for unexpected expenses. Curious to see if anyone is doing the same and finding success.
Thanks so much!
Hello and best of luck to you! You have come to the right place!
Birmingham, AL · Member since 2014 · 875 posts · 947 votes
9y
@Ben Strumeier Welcome to BP! If you haven't already, make sure you set up your keyword alerts so you know when people are talking about the topics, markets, and niches that interest you. I also suggest setting up a set of progressively more specific alerts, so you know when the holy grail thread crops up talking about your preferred niche AND market, provider, tax question etc.
Since you're looking out of state, I would recommend taking a trip to the areas you're considering, unless you've already lived there before and know the area very well. Unless you lived there very recently, a visit is worth considering anyway.
A seemingly obvious, but oft overlooked tool for scouting OOS neighborhoods is Google Earth. I don't have any personal experience in JAX, but if it's like most other markets, I assume it can change drastically street to street. It can save you a lot of time and headache to just take a little e-walk around the area you're considering. Especially if you're considering a specific property listed by an agent or marketer, I'd recommend verifying the class of area. Properties that need rehab work will obviously not look great, but the area itself should be clearly B or above. I would not recommend investing in any C or below properties from a distance, and I have seen first hand some marketers listing C properties as A or A- in my own market, so be aware of that possibility and take a quick look before you buy a plane ticket ;)
If you have any questions about the turnkey model or the market down here in Birmingham, feel free to reach out any time.
Hoboken, NJ · Member since 2017 · 12 posts · 2 votes
9y
@Clayton Mobley Thanks very much. My partner and I are planning a day trip down to Jacksonville in the next few weeks. Flights are booked and rental car is all set. Will certainly use Google Earth. That is a great tip.
We've narrowed our scope to the St. Johns Town Center, University of North Florida surrounding areas. I'm wondering if you or anyone else on here has any tips as to what we should do to find "the right areas" within those locations once we are down there.
Birmingham, AL · Member since 2014 · 875 posts · 947 votes
9y
@Ben Strumeier Sounds like you're already doing the right things. When it comes to neighborhoods, a lot of it will be pretty obvious once you're down there. You're looking for neighborhoods you would want to raise a family in, close to good employment centers, shopping, with decent schools. Now, the best schools are going to be in A/A+ areas because...well that's just how our school funding system works. If you can manage to find a distresses prop or a sweet deal in an A area, fantastic, but it's very unlikely. In general, purchasing A props is an appreciation play, not a cash flow one, and I always prefer steady income every month over the possibility of future value increases. So you're most likely going to be looking at B or B+ areas. You can tell the type of area by just driving through. It's often a good idea to drive through once during the day, at like 1pm or so, and then once again after the sun goes down.
A/A+: It's a neighborhood you'd love to live in but is likely too pricey (not to assume your net worth, just a general assumption that most people aren't crazy rich). Expensive cars, big houses, perfectly manicured lawns.
B/B+: Some place you feel safe walking around at night, without a lot of people home during the day (as most will be working). Houses should be well maintained if not luxurious. Basically a neighborhood you could see yourself living in happily but isn't anything fancy. I
C: Its a neighborhood you'd live in only if you had to and it would definitely be a temporary stop on the way to something better.
D/War Zone: You'd rather move to another state rather than live in the neighborhood. High crime rates, lots of people hanging around during the day.
General metrics you can look into are school zone grades (on School Digger, Great Schools, or Niche.com/k12), crime stats, proximity to employers, rental demand, average income etc. Not all info is available or up to date for every location, of course, but the Census Bureau is a good place to start for just cold hard data. You may want to make contact with an agent to get some comps once you determine a prop you're interested in.
If you're going to a college area, some neighborhoods are going to be 'student' areas. You need to decide if you want to rent to students. If you're self managing from afar, that might be tricky, as students don't have a rep for being great at home maintenance ;) Party damage and move outs can be pricey. Of course, you'll know better than I what rental demo you want to shoot for.
Hoboken, NJ · Member since 2017 · 12 posts · 2 votes
9y
@Clayton Mobley many thanks for taking the time to put this detail together. I will certainly utilize it during my search. Looking forward to getting down there and moving forward.
Real Estate Agent · Jacksonville, FL · Member since 2017 · 43 posts · 19 votes
9y
Hi @Ben Strumeier Jacksonville is a very large city. Have you ever visited Jacksonville, FL? It's such a large city. Each area of the city has a different feel to it. The St. Johns Town Center/UNF area is a very nice area.
Are you also thinking of moving here? I've been here ten years (from Jersey also).
Hi all - I just got into the Bigger Pockets Podcast and it is amazing. A friend of mine and me are interested in purchasing what will hopefully be our first of many properties in the Jacksonville area (we are from NYC). Our goal for our first property, besides getting our feet wet, is to purchase a rental property that will cover the cost of our mortgage, taxes, HOA, if any, and hopefully provide a modest cash flow which could pay for unexpected expenses. Curious to see if anyone is doing the same and finding success.
Thanks so much!
Welcome to the site Ben. Sounds like a very achievable goal. Good luck to you guys.
@Clayton Mobley Thanks very much. My partner and I are planning a day trip down to Jacksonville in the next few weeks. Flights are booked and rental car is all set. Will certainly use Google Earth. That is a great tip.
We've narrowed our scope to the St. Johns Town Center, University of North Florida surrounding areas. I'm wondering if you or anyone else on here has any tips as to what we should do to find "the right areas" within those locations once we are down there.
I've lived in Jacksonville for 20 years now and owned a mobile business so I was all over Jacksonville and have a very good understanding of it. It's a great city for investing. If you have any questions while you're down here, don't hesitate to ask. http://www.areavibes.com/jacksonville-fl/neighborhoods/
Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
9y
Thanks so much for this link @Darren Fettik. I am also interested in Jacksonville, and a few other areas in the south, and any starting point is helpful to an out of towner.
@Clayton Mobley helpful as always. I am looking forward to our discussion.
Real Estate Agent · Orange Park, FL · Member since 2017 · 61 posts · 16 votes
9y
Hello Ben!!
It seems that you are particularly looking for student rentals in Jacksonville, Florida. Is this assumption correct? @Dionne Brunson mentioned that our area is so large, with each having a different culture. I am actually planning to purchase my next rental property in the Oakleaf area. This is a "B" rated area, where there are more families than students. I did not want to venture into student rentals for my first few properties, as I know the incidentals of damage are much higher. Have you looked into the FSCJ area? That is our community college. There are approximately 7 or 8 of them spread around.
I am actually planning to purchase my next rental property in the Oakleaf area.
I hadn't thought of Oakleaf being an area for investors. I live in Watermill which is very close to Oakleaf. Families love the schools and youth athletics in that area.
Hoboken, NJ · Member since 2017 · 12 posts · 2 votes
9y
@Joddie Mcclain thanks for your note. I am actually not 100% sure yet. Over the last couple of weeks I've gone back and forth between condos in the Deerwood, UNF, St. Johns Town Center area and short term rentals in the Ponte Vedra area (obviously these are too far apart from the others). We are certainly not set on student rentals, but from my reading, research and speaking with others, being near a school can often be lucrative. As this is our first property, we are looking to buy something in good shape and are willing to take a small profit hit to ensure that and to limit growing pains
Real Estate Agent · Jacksonville, FL · Member since 2017 · 43 posts · 19 votes
9y
I know this is unrelated to real estate but I'm always looking for small businesses to highlight. Jax is so big that often times people just don't know these small businesses exist.
Real Estate Agent · Orange Park, FL · Member since 2017 · 61 posts · 16 votes
9y
@Ben Strumeier Yes, I can understand the small hit in exchange for the growth. I can't remember what podcast it was (somewhere between 1-16) but one of the advantages of a student rentals is that you can require a co-signer. 8 out of 10 times parents don't want their credit messed up so they will make sure that the rent is paid.
Real Estate Agent · Orange Park, FL · Member since 2017 · 61 posts · 16 votes
9y
@Dionne Brunson Yes, every time I visit my friend in Oakleaf it seems there is new development. The schools are decent and many of the families are middle-income producers. I live in Fleming Island and have thought about that area; however, many people don't want to drive that far out unless they are families just wanting the A school district.
Specialist · Jacksonville, FL · Member since 2015 · 63 posts · 17 votes
9y
@Ben Strumeier I'm so glad to hear that you are interested in acquiring cash flowing multifamily properties around the UNF, St. Johns Town Center, and possibly Ponte Vedra areas. I have lived in Jacksonville for 7 years and know the areas well you are interested in.
I graduated from the University of North Florida with degrees in both Economics and Finance. Since graduating I have moved to Ponte Vedra where I work with MountainStar Capital, a Real Estate Investment Company. I am more than happy to assist you in finding properties as I am licensed Florida Realtor that specifically works with investors. Feel free to privately message so we can better connect.
I know this is unrelated to real estate but I'm always looking for small businesses to highlight. Jax is so big that often times people just don't know these small businesses exist.
Oh ok cool! We were voted one of the Top 12 shops in North America 2 years in a row and voted #1 by News4Jax!
Investor · Ponte Vedra, FL · Member since 2017 · 1 post · 0 votes
9y
Ben, Jax is a great spot with good returns over the past couple of decades. There was a recent guest on the BP podcast named Kenyon Meadows who was talking about the area as well if that helps with some research (his website is alternativefinancialmedicine.com).
I've been in Jax (now live in Nocatee, a planned community 20 minutes south in Ponte Vedra) since 1996 and there's been and continues to be a great deal of development. You'll see the expansion around the town center. It's a joint venture between Simon and RREEF so it continues to expand (encourage you to visit the TopGolf they added last year if you're a golfer!).
I'm rather new to investing and only have one rental but happy to help in any way I can, or get a coffee while you and your partner are in town to help give you the lay of the land.
Mike
Real Estate Agent · Orange Park, FL · Member since 2017 · 61 posts · 16 votes
9y
@Michael Carletta Thanks for that tidbit on the podcast! I just saved it on my BP app of shows to listen to next. I've been working my way up from #1 and occasionally listen to the recent podcasts, maybe once a week.
@Ben Strumeier I would also listen to podcast #8 with Al Williamson as he is a guru on building positive landlord/tenant relationships. I found some of his strategies on sustaining those relationships very profound. As you mentioned that you "just got into the Bigger Pockets Podcasts."