When it comes to investing in rental properties, location is essential. Choosing the wrong area can mean putting your investment plan at risk. So if you want to know which neighborhoods are best to invest in, especially in the Jacksonville Area, look no further.
How To find the best neighborhoods
When looking for the best neighborhood for rental properties, affordability should be a key factor. High prices can decrease rental demand and contribute to vacancy, so JWB targets areas with long-term leases. On average, residents stay for 4.5 years. In order to focus on affordability, JWB looks at criteria such as property values, income levels, age of construction, amenities, and crime rates in the area.
Here’s our top focus & here’s why:
#1 The property lives just under the middle-income level
When it comes to rental properties, lower to middle-income neighborhoods often provide the most balanced returns on investments as rent prices generally remain in line with home values. This is why JWB recommends our clients consider a long-term buy-and-hold strategy for these areas. Upper-middle income neighborhoods can present greater risks, such as rents not keeping up with increasing property values resulting in negative cash flow. Ultimately, finding a balance between desired returns and associated risks is essential when investing in rental properties – there’s no one size fits all solution but evidence-backed research can help guide the decision-making process.
#2 The property is surrounded by a burgeoning job market
When seeking out the best rental property neighborhoods, it’s important to consider the local job market. Factors such as nearby employers offering multiple job options within reasonable commute times (10-20 mins), are likely to mean tenants can pay rent on time and stay in the area for longer periods of time. Evaluating the local job market, such as by looking in business journals or contacting Chambers of Commerce, can also show which businesses are coming into the area. An example is Jacksonville and their downtown revitalization project, making it a prime location for rental properties with a stable economy.
#3 The property has low crime in the area
When investing in rental properties, it’s important to evaluate the safety of a neighborhood. Utilizing sites such as trulia.com, you can access crime maps to determine what areas have higher crime rates and those which may be safer for potential tenants. Though there is no perfect neighborhood when it comes to investments, it’s best to steer clear of those with high levels of crime so that your tenants feel secure in their homes.
The Best Neighborhoods to Invest in in Jacksonville
House appreciation in Jacksonville has outperformed other areas of the state, making this great news for those looking to invest in rental properties, especially with JWB. We personally invest in these four core neighborhoods: Northside, Westside, Southside, and Arlington. While outside of the 9 fastest-growing neighborhoods in Jacksonville, they reflect JWB’s investing philosophy and provide a solid ROI for us and our clients.
We can help you source these properties if you give us a call at (904) 677-6777 or you can also go to www.JWBInventory.com to see our featured availability.
