Buying a multifamily in Jacksonville

Member since 2020 · 32 posts · 20 votes

I am looking to buy a rental multifamily home. Jacksonville grabbed my attention from a preliminary search because of the home prices, Florida's landlord friendly laws. I'm from New York and wanted any advice from anyone who has done the same thing with buying and managing a property out of state. What are some of the challenges to prepare for?

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Kerlous TadresBusiness Member

Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes

@Barshawn Lopez, You're right that the fundamentals look attractive, but from experience, the biggest challenge with any out-of-state buy is that your team on the ground becomes everything. I'd recommend getting a good property manager locked in before you close and vetting them hard, because a bad PM will quietly eat your cash flow and you won't catch it from a distance.

[email protected]614-490-1163

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Jay Long
Member since 2026 · 7 posts · 9 votes
3w
Buying a investment property out of state has its goods and bads. I can help guide you on any contractor/ building side of things. Personal Jacksonville is a weird market. I seen to many investment groups come in to buy up alot of muiltifamily do little work put tenets in, try to flip the prop and still asking top dollar. Other muiltifamily prop are owned by a few local investment companies which they have control alot of the rent market for years. Then you have a bottom of the barrel muiltifamily, which are to far gone to put money into with updating with permits ( which the city is for sure driving around watching out for non permitted work) to see a good return. There 3 affordable apartments getting built. So alot of people have started to look into getting on the waiting list. Tenets doing applications for rent, have troubling issues with credit scores too.
Have you looked outside of Jacksonville? Like North or South?
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Barshawn Lopez
OP
Member since 2020 · 32 posts · 20 votes
3w
Thank you for that information. I have only looked in the general Jacksonville area. If you have any specific areas, that would be appreciated.
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Dan HandfordPro Member
Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
3w
Barshawn, the biggest out-of-state risk is usually not distance itself. It is relying on assumptions you cannot independently verify. Before choosing Jacksonville, build a local operating picture: block-level rents, insurance and flood exposure, property taxes after purchase, maintenance response times, tenant demand, and realistic management costs. Interview several managers before making an offer and ask each for recent examples of leasing time and repair costs. What size multifamily property and price range are you targeting?
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- Barshawn Lopez
  OP
  Member since 2020 · 32 posts · 20 votes
  3w
  Quote from @Dan Handford:
  
  Barshawn, the biggest out-of-state risk is usually not distance itself. It is relying on assumptions you cannot independently verify. Before choosing Jacksonville, build a local operating picture: block-level rents, insurance and flood exposure, property taxes after purchase, maintenance response times, tenant demand, and realistic management costs. Interview several managers before making an offer and ask each for recent examples of leasing time and repair costs. What size multifamily property and price range are you targeting?
  
  Thanks Dan, very insightful. I was thinking of a two or three family home no more than 300k.
  0 Reply
Michael Eskenasy
Investor · Pacific Northwest · Member since 2026 · 511 posts · 286 votes
3w
Jacksonville can work, but I wouldn’t make “Florida is landlord friendly” a major part of the investment thesis.

For an out-of-state owner, I’d spend more time on insurance, flood exposure, property taxes after purchase, actual neighborhood-level rents, and who is going to manage the property when something breaks.

Jacksonville is also a market where two properties 10 minutes apart can be very different investments.

Before buying anything, I’d get real insurance quotes, check the flood zone, verify the post-sale tax estimate, and talk to a few property managers about the exact ZIP code and tenant base.

Then underwrite it with management, vacancy, maintenance, CapEx and a realistic insurance number.

The biggest challenge with out-of-state investing usually isn’t distance. It’s believing numbers you haven’t independently verified because you don’t know the market well enough yet.

Build the local team first, then buy the property.
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- Barshawn Lopez
  OP
  Member since 2020 · 32 posts · 20 votes
  3w
  Quote from @Michael Eskenasy:
  
  Jacksonville can work, but I wouldn’t make “Florida is landlord friendly” a major part of the investment thesis.
  
  For an out-of-state owner, I’d spend more time on insurance, flood exposure, property taxes after purchase, actual neighborhood-level rents, and who is going to manage the property when something breaks.
  
  Jacksonville is also a market where two properties 10 minutes apart can be very different investments.
  
  Before buying anything, I’d get real insurance quotes, check the flood zone, verify the post-sale tax estimate, and talk to a few property managers about the exact ZIP code and tenant base.
  
  Then underwrite it with management, vacancy, maintenance, CapEx and a realistic insurance number.
  
  The biggest challenge with out-of-state investing usually isn’t distance. It’s believing numbers you haven’t independently verified because you don’t know the market well enough yet.
  
  Build the local team first, then buy the property.
  Thank you Michael that makes perfect sense.
  0 Reply
Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 904 votes
3w
Quote from @Barshawn Lopez:
I am looking to buy a rental multifamily home. Jacksonville grabbed my attention from a preliminary search because of the home prices, Florida's landlord friendly laws. I'm from New York and wanted any advice from anyone who has done the same thing with buying and managing a property out of state. What are some of the challenges to prepare for?
Jacksonville can definitely work, but I’d also compare it with some Midwest markets before making the jump. Buying out of state isn’t as intimidating as it sounds when you have a solid property manager, reliable contractors, and a lender you trust locally. The biggest thing is having the right boots on the ground and buying based on the numbers, not just the market. The Midwest is one area I’d take a serious look at for lower entry prices and cash flow potential.
[email protected]614-418-6081
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Barshawn Lopez
OP
Member since 2020 · 32 posts · 20 votes
3w
Hi Armen,
I appreciate the feedback. If I can find where to find information on block-level rents, insurance, flood exposure, property taxes after purchase, maintenance response times, tenant demand, and realistic management costs for each prospective area, I think that will be a good place to start to aid in my decision.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
3w
Challenge #1 - picking a market with little to no research, but willing to accept the advice of questionable strangers.
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- Barshawn Lopez
  OP
  Member since 2020 · 32 posts · 20 votes
  3w
  Quote from @Drew Sygit:
  
  Challenge #1 - picking a market with little to no research, but willing to accept the advice of questionable strangers.
  How would you know what research i've done? Would you be a questionable stranger?
  0 Reply
- Drew SygitBusiness Member
  Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
  3w
  How are we to know as you didn't share that info.
  Thus, we're forced to go the safest route and assume you haven't:)
  [email protected]248-209-6824
  Logical Property Management4.9450 Reviews
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Jamie Parker
Real Estate Investor · Memphis, TN · Member since 2016 · 402 posts · 129 votes
3w
@Barshawn Lopez The problem with out of state investing in multifamily is the assumptions. If you can right size your assumptions, it is easier to understand if out of state investing will serve your needs. There is an amount of doors when management is easier and returns begin to really outpace single family by leaps and bounds. I am not an holder of multifamily property at this time, but I am also working towards acquisition.
2-10 units can be great buys if the properties are in good - great shape OR you are prepared to hold long term.
What I have seen in underwriting deals 10 units and under.
Property management will determine your cash flow - If you get good tenants the property wont get beat up too bad. Smaller units will cost 10% for management
CAPEX and Maintenance is a MUST. - When things break you have to fix it. Immediately. being out of state all you see is a bill.
Rent Growth Assumptions must be reasonable - If the job growth/population growth is healthy and the property is competitive, rents should increase at a reasonable and predictable rate.
From what I am seeing in small multifamily, is you have to have the right property management team. If you build a good team that will help you be successful in any investment from out of state.
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- Barshawn Lopez
  OP
  Member since 2020 · 32 posts · 20 votes
  3w
  Quote from @Jamie Parker:
  
  @Barshawn Lopez The problem with out of state investing in multifamily is the assumptions. If you can right size your assumptions, it is easier to understand if out of state investing will serve your needs. There is an amount of doors when management is easier and returns begin to really outpace single family by leaps and bounds. I am not an holder of multifamily property at this time, but I am also working towards acquisition.
  2-10 units can be great buys if the properties are in good - great shape OR you are prepared to hold long term.
  What I have seen in underwriting deals 10 units and under.
  Property management will determine your cash flow - If you get good tenants the property wont get beat up too bad. Smaller units will cost 10% for management
  CAPEX and Maintenance is a MUST. - When things break you have to fix it. Immediately. being out of state all you see is a bill.
  Rent Growth Assumptions must be reasonable - If the job growth/population growth is healthy and the property is competitive, rents should increase at a reasonable and predictable rate.
  From what I am seeing in small multifamily, is you have to have the right property management team. If you build a good team that will help you be successful in any investment from out of state.
  You are right about that. Then the next goal sounds like it would be to put a team together that is trustworthy to give me accurate information to facilitate my decision.
  1 Reply
Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
3w
Quote from @Barshawn Lopez:
I am looking to buy a rental multifamily home. Jacksonville grabbed my attention from a preliminary search because of the home prices, Florida's landlord friendly laws. I'm from New York and wanted any advice from anyone who has done the same thing with buying and managing a property out of state. What are some of the challenges to prepare for?
Welcome to BP! Out-of-state investing is definitely doable, but your local team is everything. I'd focus on finding a solid property manager, inspector, and reliable contractors before buying. Make sure you're also underwriting realistic management, vacancy, repairs, CapEx, taxes, and especially Florida insurance costs. I moved from Portland to Columbus in 2020 to invest, and learning the neighborhoods firsthand and having dependable people on the ground made a huge difference. I'd also visit Jacksonville before buying if possible and spend time driving the areas you're considering. Happy to connect and answer any questions you have!
[email protected]614-300-7535
Jimmy Lieu, Red 1 Realty4.9119 Reviews
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Amber Stout
Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 356 posts · 148 votes
3w
@Barshawn Lopez I’d say your team on the ground is probably the biggest piece - a strong agent, property manager, inspector, etc. can make or break the experience when you’re not local.

One thing I’d also pay close attention to in FL is insurance. It can change the numbers pretty dramatically from one property to another, so I’d get real insurance quotes early rather than relying on estimates when you’re underwriting deals.

I’m also an investor focused lender here in FL and with multifamily I’d think about the financing strategy beyond just getting into this first property especially if your goal is to continue building a portfolio. Happy to be a resource if you have any financing questions as you start looking!
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- Barshawn Lopez
  OP
  Member since 2020 · 32 posts · 20 votes
  3w
  Quote from @Amber Stout:
  
  @Barshawn Lopez I’d say your team on the ground is probably the biggest piece - a strong agent, property manager, inspector, etc. can make or break the experience when you’re not local.
  
  One thing I’d also pay close attention to in FL is insurance. It can change the numbers pretty dramatically from one property to another, so I’d get real insurance quotes early rather than relying on estimates when you’re underwriting deals.
  
  I’m also an investor focused lender here in FL and with multifamily I’d think about the financing strategy beyond just getting into this first property especially if your goal is to continue building a portfolio. Happy to be a resource if you have any financing questions as you start looking!
  Hi Amber,
  Thank you for that information. Is the best way to find good inspectors, agents, PM etc through referrals or is there a better course of action to take?
  0 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
2w
@Barshawn Lopez
It does make sense to invest in Jacksonville for a person coming from another state, but the main issue here is having a reliable local team that can be trusted, as you are quite far away. I would form my property manager, friendly investor realtor, contractor and lender before buying the property, and then I would analyze everything carefully.
Good luck!
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Ecaterina Katerina Morosan
Real Estate Agent · Miami, FL · Member since 2022 · 238 posts · 102 votes
2w
Hi Barshawnn, what type of multifamily property are you looking for in Jacksonville?
Our team has worked with out-of-state investors, including many from New York and the BiggerPockets community, for several years. We’d be happy to connect, walk you through the process, and help you understand the different areas and ZIP codes in Jacksonville so you can make a more informed decision.
Are you planning to visit Jacksonville regularly, or are you looking to purchase remotely from out of state? We’re experienced with both in-person and remote transactions and would be happy to answer any questions and help you identify the right market and property for your investment goals.
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- Barshawn Lopez
  OP
  Member since 2020 · 32 posts · 20 votes
  2w
  Quote from @Ecaterina Katerina Morosan:
  
  Hi Barshawnn, what type of multifamily property are you looking for in Jacksonville?
  Our team has worked with out-of-state investors, including many from New York and the BiggerPockets community, for several years. We’d be happy to connect, walk you through the process, and help you understand the different areas and ZIP codes in Jacksonville so you can make a more informed decision.
  Are you planning to visit Jacksonville regularly, or are you looking to purchase remotely from out of state? We’re experienced with both in-person and remote transactions and would be happy to answer any questions and help you identify the right market and property for your investment goals.
  Hi Ecaterina,
  I'm looking for a duplex or triplex in in a C class neighborhoods. Close to either transportation, shopping, highways or the airport. I would be looking to manage it remotely. Thanks for contacting me .
  0 Reply
Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
2w
@Barshawn Lopez, You're right that the fundamentals look attractive, but from experience, the biggest challenge with any out-of-state buy is that your team on the ground becomes everything. I'd recommend getting a good property manager locked in before you close and vetting them hard, because a bad PM will quietly eat your cash flow and you won't catch it from a distance.
[email protected]614-490-1163
Kerlous Tadres | Reafco Real Estate539 Reviews
Website View Page
1 Reply
Chris Grenzig
Property Manager · Orlando, FL · Member since 2016 · 479 posts · 277 votes
1w
@Barshawn Lopez we've bought 150 units of MF in Jax, still own 51 units, and manage for other owners in Jax and Orlando areas.
MF in Jacksonville is tough to make pencil right now. If you're willing to be patient, and buy an okay deal, and think the market will improve in the future than you can possibly find something, but don't expect crazy returns day 1. If you find a deal that is an 7% cap rate or higher right now I would very hesitant because my best guess is the rent is too high, the expenses are too low, or the assumptions are off somewhere.
Also, you can definitely manage remote, but C class tenants are going to be the most demanding of your time, so it will be the most difficult versus Class A or B. Not saying it can't be done, just be prepared.
If you do plan to self manage make sure you have a great landlord attorney in FL and spend the money on a good legal lease, have a few local handyman, contractors, plumbers and HVAC people ready to go, and make sure you have a way to collect money electronically and keep accurate books.
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- Barshawn Lopez
  OP
  Member since 2020 · 32 posts · 20 votes
  1w
  Quote from @Chris Grenzig:
  
  @Barshawn Lopez we've bought 150 units of MF in Jax, still own 51 units, and manage for other owners in Jax and Orlando areas.
  MF in Jacksonville is tough to make pencil right now. If you're willing to be patient, and buy an okay deal, and think the market will improve in the future than you can possibly find something, but don't expect crazy returns day 1. If you find a deal that is an 7% cap rate or higher right now I would very hesitant because my best guess is the rent is too high, the expenses are too low, or the assumptions are off somewhere.
  Also, you can definitely manage remote, but C class tenants are going to be the most demanding of your time, so it will be the most difficult versus Class A or B. Not saying it can't be done, just be prepared.
  If you do plan to self manage make sure you have a great landlord attorney in FL and spend the money on a good legal lease, have a few local handyman, contractors, plumbers and HVAC people ready to go, and make sure you have a way to collect money electronically and keep accurate books.
  Hi Chris,
  Thank you for that great insight. What are some of the most common issues that tenants have?
  0 Reply
- Chris Grenzig
  Property Manager · Orlando, FL · Member since 2016 · 479 posts · 277 votes
  1w
  Tenant issues vary greatly depending upon the property, how you manage them, and just vary because every person and situation is different. I'd love to give a blanket answer or even top 3, but it just does vary that greatly. We've been managing for a long time and we still run into unique situations we've never encountered often enough.
  0 Reply
Jason CrowePro Member
Real Estate Agent · Jacksonville, FL · Member since 2019 · 209 posts · 47 votes
1w
I can assist in jacksonville I own multiple and rent construct and understand the rental market better than most.
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Antawn WegPro Member
Lender · Jacksonville, FL · Member since 2026 · 4 posts · 1 vote
1w
Hey Barshawn! As a Jacksonville resident, and a licensed Florida MLO, I'd love to connect and help you find what you are looking for. I currently live in the Riverside/Avondale neighborhood which is a historic and lively Jacksonville community with great homes and a lot of small multifamily homes without any HOAs. Would love to help be your boots on the ground from here in Jacksonville and get you started on your investing.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
1d
Holla
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