Jacksonville

Jacksonville

 

Florida’s most populous city is growing in every way. Affordable prices and a large tenant base make Jacksonville real estate a great source of CASH FLOW.

 

Jacksonville is the LARGEST CITY by land area in the contiguous United States … and it has the PEOPLE to match!

Since the 2000s, the population of Jacksonville has been inching steadily toward 1 million residents. That number is expected to increase exponentially with a population growth rate that is more than double that of the entire U.S.

From 2010 to 2017, Jacksonville’s population increased by an incredible estimated 8.5 percent, according to the Census Bureau.

With such a large population and landmass comes a large tenant pool. In fact, as of 2019, about 44 percent of the city’s current residents were renters … and that number is expected to remain stable, which means a HUGE opportunity for real estate investors.

The tenant pool is also largely stable and reliable. Employment stats mirror the population, with a job growth rate that in 2019 was 82 percent higher than the national average.

This is NOT the typical “Florida retirement community” you may be picturing in your mind.

Many corporations and their employees call Jacksonville home … including Amazon, IKEA, Maxwell House, and Bank of America … and more move to the area every day.

In fact, Forbes ranks Jacksonville as the 7th best city for future job growth and the 8th biggest city with the fastest growing economy.

Once they arrive, residents find an area with year-round sunshine, open space, and low taxes … not to mention that the current market is one of the most AFFORDABLE in the country.

The median rent for a one-bedroom apartment in 2019 is approximately $1,050. And the median price of a Jacksonville investment property is about $163,000 … significantly lower than the rest of the United States.

But reports show that homes for sale in the area are projected to slowly increase in price … so sooner is better than later to buy and hold properties for large investment returns.

The numbers aren’t the only thing that make the Jacksonville market an attractive place to both live and invest.

Don’t forget about the pristine beaches, world-class museums, and lively entertainment.

Discover 840 square miles of investment opportunity and potential cash flow in Jacksonville, Florida! Learn more about the Jacksonville area through the list of helpful resources below.

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Market Spotlight – Jacksonville, Florida

It’s the first week of our market spotlight series … and we’re starting with a city that has been on our radar for a while … Jacksonville, Florida!

There’s a lot to like about this Northeast Florida city. To start, it’s the fourth largest economy in Florida and has the largest population in the state … which means HUGE opportunities for real estate investors.

Listen in as we visit with some of our favorite boots-on-the-ground experts and explore all Jacksonville has to offer.

In this episode of The Real Estate Guys™ show you’ll hear from:

  • Your sunshine-loving host, Robert Helms
  • His sunny-side-over co-host, Russell Gray
  • President and co-founder of Southern Impression Homes, Chris Funk
  • General manager of Southern Impression Homes, Chandler Janger

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Why Jacksonville?

There are so many places for you to invest in real estate. So, for the next few weeks we are highlighting some of the markets we find interesting this year.

Jacksonville, Florida, is a place  we have been looking at for a long time because there are SO MANY reasons to like it.

Jacksonville has the largest population in Florida and the fourth largest economy. And did we mention it’s a no-income-tax state?

Florida is the No. 1 location that baby boomers choose to retire in, but the year-round sun attracts younger tenants too. Variety and diversity is the name of the game.

Whether you’re a single-family-home investor or are interested in multifamily properties or even vacation ownership, Jacksonville is full of possibilities.

Opportunities for high returns in new construction

Our guest today is Chris Funk of Southern Impression Homes. Chris started out in the dry-cleaning business … and then the ’08 crash happened.

Like many business owners, Chris lost about 20 percent of his revenue. He needed to find a new source of cashflow. What he found was real estate.

Ultimately, Chris bought up about 25 homes. He bought them cheap, renovated them, and rented them out. The cash came in … and Chris was hooked.

He expanded his portfolio and soon went from buying 50 houses a year to buying 50 houses a month!

The biggest challenge for Chris was finding good property management, so he decided to do it himself.

Before he knew it, Chris was running a large property management company and expanding from renovations to land purchasing and new construction in Jacksonville.

Chris says that renovating older homes is still his bread and butter, but he realized there are great opportunities for profits from new construction.

New homes come with limited maintenance costs, and when you build from the ground up, you have 100 percent control over every aspect of the build.

New construction is often more attractive to tenants … much of the growing labor force in Jacksonville has chosen to settle in new construction.

And more interested potential tenants means properties are more attractive to investors like you.

It’s this aspect of business that makes Chris’ approach to the market unique. Instead of focusing on selling to individual owner-occupants, Chris tries to sell most of his inventory to investors.

“Investors have been our lifeblood ever since we started in our real estate business,” Chris says. “We’re investors ourselves, and we built our property management company as a company that is built by investors for investors.”

Chris says he doesn’t want to just sell a house and go away. He wants to become part of the investor’s team on the ground and manage their assets … all of them!

It’s a long-term opportunity instead of a one-time sell. And investors who work with Chris do more business, more often.

Investment opportunity in Jacksonville isn’t confined to single-family homes. Chris knows this and builds new duplexes, triplexes, and fourplexes as well.

Like many other markets, the cash-on-cash yield for a multifamily property is higher than that for a single-family home … but you do give up some appreciation.

One of the most attractive elements of the Jacksonville market is affordability. Single-family homes range from $150,000 to about $200,000. The highest priced fourplexes clock in at about $550,000.

What investors need to know

Jacksonville … like the rest of the sunshine state … has had double digit population growth every year since the census was created.

It’s not a town full of retirees either. Young professionals settle there to take advantage of affordable prices and job opportunities.

The city has a booming financial district with major corporations like Fidelity National Title, Ameris Bank, and Wells Fargo.

There’s also a thriving industrial sector. Companies from Coach to Mercedes and FedEx have major distribution centers in the metro area.

The United States military maintains a large presence in Jacksonville … and they are expanding their ranks.

From a tenant perspective, Southern Impression Homes General Manager Chandler Janger says this means the average resident is middle to upper middle working class … largely reliable and looking for a great home at a great price.

By keeping property management in-house, Southern Impression Homes can give investors in-depth insight into each of their properties. An online portal offers instant access to occupancy, payment, and tenant information.

Owners are paid electronically the month after rent collection and receive a monthly statement broken down by property.

Chandler says if there’s one thing investors should know, it’s that communication is key. In property management, there are a lot of moving parts … clear communication makes everyone’s job easier.

With great teams in place on the ground and beautiful properties, Jacksonville is a market worth looking into.

To discover if Jacksonville is a good fit for your portfolio, check out the Jacksonville Market Report prepared by Chris and his team at Southern Impression Homes.


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The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


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Jacksonville Market Report

Jacksonville Market Report

 

Affordable rates, a thriving economy, and world-class beaches … it’s a property investment paradise!

Jacksonville, Florida, is 840 square miles of investment opportunity. It’s the largest city by land area in the continental U.S. and Florida’s most populous metro.

It’s not just the city that’s big. Florida’s economy is the 4th largest in the U.S. … and in Jacksonville, job growth is off the charts!

That means a large pool of stable tenants for you to choose from … 44 percent of the city’s residents are renters, to be exact.

In this special report, discover the many reasons Jacksonville is great for cash flow, including:

  • Affordable home prices and rental rates
  • Year-round sunshine, open space, and low taxes
  • A growing population
  • A thriving economy
  • And more!

Find a piece of investment paradise in Jacksonville!

Simply fill out the form below to access the Jacksonville Market Report.

Southern Impression Homes – Chris Funk

Southern Impression Homes – Chris Funk

 

Great Market. Brand New Property. Strong Cash Flow. Affordable Price. Top Property Management Team.

In today’s changing real estate market, it’s hard to get inventory at a price that gives you a good cash flow yield.

Chris Funk’s team has the answer …

Build-to-Rent your own investment property!

Chris Funk and his team entered the real estate game like many investors … acquiring and renovating foreclosed homes after the ’08 crash.  As the economy recovered it become harder and harder to get bargains on their acquisitions.

So they expanded into development and new construction … and Southern Impression Homes was born.

Now you can ride their coattails into developing your own portfolio of single family homes.

Chris knows the success that comes from a good real estate investment. He wants his investors to get a great property for a great deal in a great market.

While their primary market is Jacksonville, Florida … Chris’ team is also building and managing portfolios for investors throughout Northeast Florida and in Atlanta, Georgia.

The market in Northeast Florida is BOOMING. Chris’ team is your key to success!  Chris and his team have locked up prime land at prices that allow them to pass those savings onto investors …

What exactly does this mean for you?

You can get a NEW property that cash flows just as well (maybe even better) than existing, older properties.

Better cash flow. Better tenants. And less maintenance!

PLUS their sister company, SunCoast Property Management, is renowned for their top class property management.  And with over 2,000 properties under management … You better believe they’ve got their operations dialed.

Jump on better returns without settling for lower quality.

Simply fill out the form below … And a Southern Impression Homes team member will be in touch!

Apartment Market Forecast 2018

An essential part of being a real estate investor is finding the perfect combination of market and product type. But markets, product types, and even financing are CONSTANTLY shifting.

How can you read the tea leaves and see what’s in store?

Today, we offer some help in the form of Brad Sumrok. Brad has been investing for 16 years. These days, he also spends a significant amount of time teaching investors how to get into the multi-family space.

In this episode, we discuss choice gems from Brad’s annual Apartment Market Forecast. We’ll also look at what makes a good market and how YOU can get started … or move upwards … in multi-family investing.

In this episode of The Real Estate Guys™ show you’ll hear from:

  • Your princely host, Robert Helms
  • His jester of a co-host, Russell Gray
  • The apartment king, Brad Sumrok

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Three factors of the perfect market

Let’s begin with some background.

Sixteen years ago, Brad made his first real estate investment. He didn’t start out with single-family homes … No, Brad’s first investment was a 32-unit apartment building.

Today, Brad teaches beginning and potential investors how they too can make a mark in the multi-family space with his popular Rat Race 2 Retirement courses.

Last year, his students purchased 37 apartment buildings in 14 different markets!

Along with his results-producing educational program, Brad produces a yearly Apartment Market Forecast … a data-driven report that looks at which markets in the U.S. are hot for apartment investors … and which are not.

The forecast can be divided into two main parts … old markets that still hold water, and new markets that hold opportunity for multi-family investors.

Brad gave us the run-down of his most important factors for investors.

“When I look at investing, I look at three things,” he says. “The deal, the market, and the management team.”

We asked him to dive into what makes a good market … and why.

Brad said he does tend to like big primary markets in general because of their diverse economies. But he avoids some large markets like Los Angeles, San Francisco, Seattle, and Boston because of laws that are unfavorable to landlords.

For Brad, landlord-friendly laws and strong economies are two major keys to an ideal market.

Brad says investors can find good deals in the suburbs within an hour of many major markets. While city centers may be too hot right now, surrounding areas have a bit less competition.

Besides landlord-friendly laws, Brad says there are two other major factors investors need to consider … asset appreciation and rent growth.

Together, these factors can help investors choose the perfect market.

Some markets, like Cleveland, Kansas City, and Detroit, have higher than average cap rates but negative population and job growth.

Investors want to look for a market that boasts positive scores in all three areas. Some of Brad’s top picks for asset appreciation, rent growth, and landlord friendliness are Dallas, Tampa, Jacksonville, Orlando, and Phoenix.

Many investors worry that even in excellent markets, competition has heated up too much and they’ve missed the party.

To that, Brad says, “If you invest in your education and surround yourself with a good team, the odds are in your favor to make profitable investments.”

Investors need to understand that all ships rise … and sink … with the tide.

In good times, rents and occupancy will be high. And in bad times, apartments are a safe haven because there is always a need for housing.

Choosing and financing properties

What kind of properties does Brad advise his students to invest in?

The answer is simple … B- and C-class assets.

The reason? In central urban cores, there is too much supply and not enough demand, resulting in high vacancies and low yields.

Outside the city core, investors can still buy for less than they can build. And if you choose your market smartly, job and population growth will guarantee a demand for affordable housing.

Brad says he generally advises investors to plan to hold on to a property for at least five years.

And in terms of loans, he notes it’s essential to have predictability in financing. He works with students to help them obtain 10-12 year fixed-rate loans with an 80 percent loan to value.

It can be hard to find that type of financing in smaller markets and for smaller properties.

But it gets easier, says Brad, when investors realize they don’t need to fork up all the money by themselves.

That’s where syndication comes in.

To earn more and work less, turn to syndication

Without syndication, many investors run out of money.

Syndication not only allows investors to do bigger deals … it also offers economies of scale.

Larger properties with at least 60 units allow investors to hire a management company with the right level of cost to benefit.

At that size, management costs usually end up at about 5 percent of income, and possibly less if you have more units.

Plus, you get more data, more support, and more resources … for a smaller percentage of your revenue.

It’s part of what Brad calls “the magic of apartments.” Management costs for single-family homes, by comparison, usually run about 8-10 percent of your gross income.

Why not a 40-unit apartment? Forty units is enough to pay for a full-time person … without fully utilizing their time or efforts. But 60 is just about perfect.

Another benefit of buying big is that you DON’T have to do everything yourself. When you do a syndicated deal with other investors, your main responsibilities shift from the nitty-gritty details to regular communication with your management company about big-picture trends and issues.

The premise of multi-family investing is really the same as single-family … but financing, managing, tenant-landlord laws, inspections, and other factors are a bit different.

All that is learnable, however. To get educated, start by checking out Brad’s webinar. He’ll discuss why apartment investing is great for building passive streams of income, how YOU can get started, and what his top market picks are for 2018.

Investors evolve with education

In Brad’s own words, “Anyone can do it.” He told us there will always be competition, but even in today’s economy, there are still so many markets that make sense.

“Investors just have to step up to the plate and take a swing,” Brad says.

Just as you evolve as an investor, so do markets evolve … slowly, over time. Sometimes the shift happens so slowly … or so suddenly … that investors don’t see it coming.

That’s why folks like Brad are so important. He knows the apartment market space incredibly well, stays up to date … and is always willing to share his knowledge with other investors.

And although not every investor takes the same path to wealth that Brad did, there’s something EVERY investor can learn from Brad’s recommendations and suggestions for what makes a good market and a high-return investment.

As real estate investors, we have to take educating ourselves seriously. Whether that starts with a podcast, article, webinar, in-person event, or a training seminar like Brad’s, education is the one thing that can help YOU become an effective, efficient investor.


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training and resources to help real estate investors succeed.