Buying First Rental Property in Jacksonville FL Area

[Runelon Alcudia]

Hi everyone. I am planning to purchase my first single family rental property in the Jacksonville, FL area in the next 90 days. I would like to get feedback about this timing considering the current economic, health, and political situation. Thank you in advance!

[Gregg Cohen]

@Runelon Alcudia - Congrats on choosing Jacksonville market!  I've been investing here since 2006 and I think it's the best market in the country for both positive cash flow and above-average home price appreciation.  I'm buying more today than I ever have so I think you buying in the next 90 days is a great idea.  Invest in middle to below-middle income neighborhoods so you can get positive cash flow.  Historically Jacksonville appreciates at a rate of 4.3% per year on avg so if you're planning on buying and holding for a full market cycle (10-20 years), that should be roughly the appreciation rate to expect.  Interest rates are so low for bank financing now that it creates and incredibly opportunity to use other people's money and generate higher returns both on the cash flows monthly and long-term home price appreciation.  Inventory levels in Jacksonville are very low so this should lead to continued price growth in the short run.  My suggestion would be to buy sooner rather than later because as interest rates and home prices go up in future years, it is going to be even more difficult to find positive cash flow in a growth market like Jacksonville.