Small Multi Family In Jacksonville

[Hadar Orkibi]

Good Day Jacksonville investors and RE Professionals.

I would appreciate some feedback and "Market insight" regarding the 2-4 Multi Family investment in Jacksonville.

How is the market doing? supply and demand.

Rental market demand for 2-3 bedroom units?

Typical cap rates, and yields?

How are the Taxes and Insurance in this part of Florida? 

I'm considering investing in Florida and hear from Friends that Jacksonville has good job and population growth prospect.

Thanks in advance to all responds.

[Kevin Martin]

Good day Hadar the small 2-4 unit market in Jacksonville is very hot. There is a lot more demand than there are available properties. More than 98% of the available properties are older inventory built 20-90 years ago in the 2-4 unit rental market. There are not that many available listings for properties 2-4 units. If you can find a property in good shape its probably priced reasonably, compared to other cities in Florida, unless you are in one of the higher rent areas such as the beaches or san marco and riverside areas . The advantage of these small rental properties: I find that renters actually like the smaller buildings, they are easier to manage and they have good returns for the investors. The down side is because of the age of the inventory they may have problems passing home inspections and may require costly repairs in order to get bank financing which may mean you can only buy it for cash. I am currently building the only new construction 2-4 rental properties in Jacksonville, that are listed on the MLS , I have about 60-70 units in different phases of construction. From my experience I can say that you can expect a cap rate of around 10% with rents going anywhere from $900 to $1250 for a new construction on 2-3 bedroom unit. Taxes are about 2% of the property value in Jacksonville and insurance you can expect to pay about $500 per unit per year. Based on all the calls Im getting about my units ,Jacksonville is quickly becoming a very interesting market for rental property investors, we do have good job growth potential and properties are relatively still very reasonably priced compared to other Florida Markets. I would love to talk to you more about it.