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Updated over 1 year ago on . Most recent reply
Need some help with investing in Jax
Hello everyone,
This is my first post as you can see. Been listening to BP podcasts and reading post day and night and I finally convinced myself to start this journey. I live in Jax area and I would like to start and buy an investment property ( single family house for rental) or short term property. Just wanted to see which areas of Jax would you suggest as there is more tendency to get rented out and not stay vacant? Argyle area? Southside? any areas that you would suggest?
Any good realtor that you guys would suggest. I have not had a good luck with realtor and they seem to be very pushy and just trying to make a deal. Any good property management that you would suggest?
I know I asked a a lot of questions as I'm so confused as where to start. Thank you so much for helping your fellow BP.
Most Popular Reply
![Michael Smythe's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2781124/1694551690-avatar-michaels3052.jpg?twic=v1/output=image/cover=128x128&v=2)
@Sun Zari suggest you spend a bit more time educating yourself. Here's some thoughts on property classes.
Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenants: Majority will have FICO scores of 680+.
Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenants: Majority will have FICO scores of 620+, some blemishes, but should have no evictions in last 5 years
Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should often be used to also cover nonpayment & evictions.
Tenants: majority will have FICO scores of 560-600, many blemishes, but should have no evictions in last 2 years. Verifying previous 2-years of rental history very important!
Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
- Michael Smythe
![business profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/marketplace/business/profile_image/641/1712167644-company-avatar.jpg?twic=v1/output=image/contain=65x65)