Jacksonville, FL Market - Insighst?

Question

Hello group,

Currently researching the Jacksonville, Florida market for MF investing. Anyone know this market who can share some insights, please? Growth areas, areas to stay away from, etc. Hitting some roadblocks here in finding the data due to the geographic size. Thank you in advance!

Carlin

Carlin A Guarneri · Answer

Hi Scott, great thank you for the information. My research has been showing Jacksonville and Sarasota as the bigger growing markets in Fla at the moment. Wondering where/if there are MF opportunities are in Jacksonville. Per Minna's post, it seems there's not much in the way of the smaller multi's... wonder if there's room for ground up builds.

Carlin

Basit Siddiqi · Answer

In my opinion, Jacksonville has a small supply of multi-family units that when they do come up, are likely priced to a point that the numbers don't make sense.The city has so much land / space and there is much more supply of SFH's where they likely make more sense for an investment than Multi's.Most of the multi's in the nicer areas are around the five points / Murray Hill or San Marco Area.The other multi's are likely in the 'rougher' parts.Best of luck

Carlin A Guarneri · Answer

Minna,

This is exactly what I was looking for. Thank you so much for taking the time to provide that background. I will share this with my team next week and will probably reach out to continue the conversation if that is okay with you!

Thank you again,Carlin

Najma Osman · Answer

HI @Carlin A Guarneri,

Depending on your investing goals, I think it's worth it to look into markets in the midwest! I invest personally in Columbus, Ohio and I think we have a great hybrid market for appreciation and cashflow in our MF deals. Looking forward to connecting!

Peter Vekselman · Answer

i have done a few hundred flip there.  great market.  don't overthink markets too much.  in the end, make sure you have a killer acquisition machine and an implementation team around you.  without those, you will get killed in any market...

Scott Autenreith · Answer

Hi @Carlin A Guarneri

Overall, Jacksonville has solid fundamentals. Comparing against all metros over 500k+ (112 total):

9th in population growth since 2012

12th in job growth since 2017

14th in affordability in the last 12 months

66th in rental yield

Minna Reid · Answer

We are definitely not that regulated. Nothing like what you're used to lol.

As far as the SFH - $400k opens up most of the city with your requirements. If you look at the city on a map the major "areas" of Jax are separated by the Saint Johns River- the southeast quadrant of Jax is the most desirable, and priced accordingly. The closer you get to the ocean, the higher the prices. North of the river is North side. West is west side. Both North side and West side have some rough areas as well as newly developing areas, and then it fades to rural country once you go north and west enough. I personally feel Westside offers the best values in Jax, as it is still very affordable but growing quickly. If you look at the 295 corridor (except for SE Jax which is very developed all over), as a general rule once you step out of that circle, you are further from amenities and heading to the country.

Downtown is pretty much our worst area. When you see the low prices there, there's a reason why. Unless you're ready to deal w crime/drugs/rundown neighborhoods/questionable characters you will want to go further out.

The thing w Jax that you wont be used to, is that the areas are so mixed. You will see an old trailer on an overgrown lot, next to a beautiful newly constructed subdivision. Neighborhoods are not well defined geographically nor can you categorize well by zip codes or school districts, like you can up there. You just kind of get to know the areas over time.

I just checked and there are extremely few 20-100 unit MFs. Same rule of areas applies here. I also think you will have trouble finding MFs that size that are newer than 1980. Most of what I've seen like that is older, and very often you will have an investor selling a bundle of singles/duplexes/quads together, rather than one complex.

I feel like I'm starting to write a novel here lol, and I could go on. If you are coming down, spend a few days driving around and looking at the different areas. Certainly feel free to reach out to me if you have more specific questions, or need any more help.

Carlin A Guarneri · Answer

Hi Najma,

Thank you, we are identifying 2 other markets as well - though trying to stay in states that are less regulated. That being said, happy to take a look at any market. What were your thoughts? Would be open to hearing more about your market.

Carlin

Carlin A Guarneri · Answer

Hi Minna,

Thank you for the response, my fellow Nutmegger. :) We're still refining our buy box - currently researching the market for 20-100 unit MF properties; exploring B and C properties, preferably newer builds (after 1980), value-add not turnkey. We've identified Jacksonville as a market to research.

Outside of the MF strategy, I would personally be interested in taking a look at SFH fix/flips - under 400k ARV, not full gut, 1100 sqft min, 3/2 (no double yellow, flood zone, or commercial tangent).

Let me know if that helps and thank you again for reaching out. I will be in the area in a few weeks and would like to explore the market and set up meetings.

Best regards!Carlin

Minna Reid · Answer

That question is kind of broad. Maybe you want to specify what you're looking for some more.  I moved here from Connecticut 4 1/2 years ago and let me tell you it took me like a year to learn the city. We literally have everything from trailer parks in the country to multi million dollar mansions on Oceanfront and everything in between.  I will tell you that if you’re looking for those small multis like we have in Connecticut, and all over the northeast, there’s just not a lot of those here. The South was developed later and differently.  Most of our housing stock is single-family housing or very large apartment complexes.

Jacksonville, FL Market - Insighst?

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