General Views on the Jax Market

[Philip Katz]

Hi,

I’m 24 looking to move to FL in a market that fits the following: high appreciation, lots of young professionals, hot weather, possible to househack and breakeven or come close to it, and build a portfolio househacking annually, as well as buying buy and hold rentals or BRRRing.

I think any of these could fit the bill, but am leaning towards Jax.

One thing that’s attractive about Jacksonville is that the job market seems to be strong/well-diversified for tenants, and you have anything in the area from cheap to expensive so options for owning rental properties are strong. I will be working remote.

From an investment perspective: Jacksonville feels earlier in the cycle than places like Tampa or Orlando and on fewer investors’ minds (though it’s no secret).

I'd be looking to househack whether that's living in an ADU and renting out the main home, or buying small multifam or even doing enough rehab on a single-family home to create separate units.

It seems possible to find a decent small multifam you can breakeven on househacking for $400-600k in Riverside/Avondale. I’m thinking Riverside/Avondale has more room to appreciate than Jacksonville Beach and likely draws a younger crowd? Seems like Jax Beach has run its course in appreciation at least in the nicer areas, and might be harder to find tenants to cover the cost?

I’m also wondering what insurance pricing looks like given storm risk, though I know Jax has escaped hurricanes for the most part.

Apologies for all the questions, but curious what thoughts BP might have on the market generally (and where we go as COVID continues) and on the move to Jax. Thank you!

[Jack Bobeck]

Insurance is going crazy, we have seen our prices for properties double this year. Its not a normal year, get quotes from your agent to get an idea. Per my agent, many companies have pulled out of florida and some from Duval County (Jacksonville). I was paying $600 for a 1000 sq ft home in Murray Hill, now its up to $1200. They all now want a 4-point inspection too. So you may have to go the TAPCO route for a while until you can get the house up to fixed status.