I'm an OOS investor from Washington DC and actively looking at Jacksonville, FL for my first rental property. Since I'm OOS and this is my first rental, I'm not looking to complicate things too much, so not looking at BRRRS or flips for the time being but instead turnkey SFHs that are mostly ready to rent as is. I understand the home may likely need some improvements, but I would prefer to keep them under 5K. My goal is to keep my first buy under 100K and would love to get your thoughts on neighborhoods I should be looking at as well as avoiding.
Also, if anyone interested in connecting, sharing information, and providing resources, please reach out! Always happy to chat and discuss strategies!
I don’t believe you will find much for $105K ready to rent in a decent neighborhood. The only neighborhoods you will find that in won’t be a good fit for an oos investor.
Hi @Solomon Stavis I live and invest in Jax. There are pockets in town that will allow you to purchase in a decent area (32205 & 32210 for example) for 100K and rent for around 900-1K to be honest you may want to just reach out to a realtor who does Property management if you opt to do that since you are technically looking for something turnkey. You won't have much or any equity keep in mind unless you are bringing all cash you will still have to bring 20-25% to the table if you are getting a loan so it will take you some time to break even on your investment even with appreciation.
Sent you a DM... Love to connect with other DC folks. In your case, do you have David Greene's book on Long Distance Real Estate Investing? https://get.biggerpockets.com/longdistancebook/
Hi Solomon! Also a DC resident/investor who's done some research on rentals in Jacksonville and spent a fair bit of time there. I can second 32205 and 32210 as probably your best bet. I would generally avoid most places north of I-10, as they can be pretty rough and you may also have a difficult time finding a legit property manager who'll manage there. You'll also want to be careful around 103rd St/Timuquana Rd, as there can be some sketchy areas there also. If you have any room to stretch your budget, I also like the Oakleaf Plantation area.
In terms of other stuff, I would STRONGLY recommend looking for concrete block construction. I've had two deals fall apart there based on some serious termite and other WDO issues discovered during inspections. Also, this may be obvious to others, but I was initially pretty surprised at how much insurance costs down there, relative to my experience in DC and elsewhere.
@Solomon Stavis I have been investing in that price range in 32210 near Normandy blvd on the west side in Jacksonville. I see pricing on single family homes and the occasional small multifamily in that neighborhood all the time.
@Nick Pisano thanks for the very helpful feedback, especially on the areas to avoid! Yes, I've heard people suggest staying away from anything that is not concrete. I think this has been some of the most valuable advice I've gotten so far! Also are you part of any meetups targeted for Jacksonville that you could recommend?
@Matt Leber Thanks for your response. I would love to chat and hear about your experience investing in Jacksonville and any do's and don'ts
id make offers, from your home office, on reos, on market mls, (not off market stuff) use internet, zillow, pics, now more vid support, google maps, with goal of acceptance and 10 day Due diligence , ..you might get 5-10% off retail list price, then have inspection, with support of agent. from pics you can see its just cosmetic, ..after close, use property manager referral, and have them prep it to rent.. (before you make offers, hve proof of funds and approval letter pdf attachment, to systematically shoot out offers.)
I agree with what other people are saying - 32205, 32210, 32246, 32244 and 32211 are some of the places I'm looking to pick something up next. Good points on block construction although it is not a deal breaker. Also, definitely do your due diligence on insurance costs before assuming insurance costs in Jacksonville are like other places. I underwrite $800-$1000/unit/mo.
@Matt Berklacy wow thank you for that super helpful advice!!
@Carrick Young thanks for your feedback! I will definitely check out insurance prices. Are you an OOS looking at Jacksonville too? I grew up in the Bay Area and I know prices there are crazy right now.
@Solomon Stavis yes I am! I am a commercial real estate broker in San Jose and investing in Jacksonville. The market here is expensive but I am picking up a property in Evergreen that will be a BRRRR deal with very little left in it. It can be done!
@Solomon Stavis as others mentioned, there is still opportunity (not much as prices rise) in your price point and zip-codes they mentioned. One thing to keep an eye out for especially as an OOS investor is verifying whether the property is on city sewer or a septic system. There are still many areas around the city and tucked within 32211 and 32210 that may have original tanks & drain fields. This can be a big expense if not caught and is sometimes not disclosed.