Expected CAP rates for Jacksonville FL area

[Vinod Sirimalle]

Hello,

After doing some research I decided to invest in Jacksonville area. I am now in contract for a turnkey investment in Arlington area of Jacksonville. I'd appreciate if folks who invest in this area can provide some guidance on typical CAP rates as well as rents for SFRs, as I am looking to invest more here.

Would be grateful for any experiences you can share if you have invested in buy & hold properties there.

[Robert Hetsler]

I will add something a little different as a native of the area. I invest in quite a bit of commercial real-estate and residential real estate and the key is knowing where to purchase to get the best and most consistent cash flow. I also ways shoot for a 9-12% return on a cash purchase of a townhouse or condo to rent and do it in certain areas because the vacancy is so low. However, in Arlington where you are referring to, I purchased a three bedroom condo for 21K and put another 8K into it for a total of around 30K and I have it rented for $595 before paying all HOA and insurance etc.. so the cap rate is good. I got lucky though and I hope she will continue to stay. However, in the Jacksonville market, there are two main places to be that will always result in low to no vacancy and that is near the town center (32245/32256) zip code and at the Neptune, Atlantic, Jacksonville or Ponte Vedra Beach. Those areas will be on the lower end of the cap rate but usually higher quality tenants that translates into time savings and less vacancy. Bottom line is no matter where you are, assuming you have cash to offer you can get good deals. I was in a bidding war no so long ago and one at 88K when the asking price was 120,000. I subsequently found Out that I was the lowest offer by 10,000 and that was because I was purchasing cash. Also, like most places, spend money in the kitchens and bathroom and my next door neighbor happens to own a granite, Marble and ceramic tile shop so I get fairly good deals on making those areas look good and that help a lot with ratability. I hope this offers some assistance and feel free to reach out to me as I am a native of Jacksonville so I can offer a lot of helpful hint about the market.