Jacksonville Fix And Flips Seeing Growth
With such a large number of new residents migrating to Florida from states like New York and California, cities such as Jacksonville are seeing surges in the real estate market that benefit fix and flip investors. As of January 2021, the average home sale price in the city is $228,900, marking an 11% increase from the previous year. Over 1,200 homes sold during the month, which is a nearly 11% jump from last year and highlights how hot the city’s real estate market is. On average, homes are remaining on the market for 37 days which is almost 32% less than the previous year.
Both new and savvy investors that can find under-market or distressed properties that they can transform into beautiful move-in ready homes can take advantage of this hot seller’s market. Considering how quickly homes are selling, experienced fix and flip investors could chain together several profitable deals throughout the year and benefit from the current market. If you’re looking to be approved for a Jacksonville fix and flip loan, contact us today.
Jacksonville Needs New Construction
Due to the increased demand and record-low inventory shortage, Jacksonville needs residential new construction more than ever. Experienced builders and contractors are often selling homes in the area based solely off the blueprints and property location, highlighting the rabid market demand occurring throughout Florida. As of January 2021, homes in Jacksonville are selling on average for $136 per square foot, which is a 12% increase from the previous year. For those that can source their building materials directly to reduce overhead costs, Jacksonville new construction could prove to be a very lucrative investment.
It’s important for investors to research real estate market trends so they can maximize their ROI by leaning into what home buyers are looking for. Currently, three of the biggest real estate trends in Jacksonville are new kitchen, sprinkler system, and large walk-in closet. These three features are gaining more attention online than other listings, selling for higher average prices than homes without them, and selling for slightly above asking price. Being able to meet market demand by building around their needs is a unique opportunity that is not afforded to other real estate investors and can help explain why new construction is exploding in Florida. If you’re an experienced investor looking for a Jacksonville new construction loan, contact us today.
Investors Choosing Jacksonville Rental Property
With such a large population surge occurring in the city and state, rental property has once again become a hot commodity. Low housing inventory has led to many of these new residents seeking out rental options, meaning investors looking to expand their rental portfolio should take advantage of the high demand in Jacksonville, Florida.
Real estate investors looking to grow long-term wealth have been using the BRRRR method, which is an acronym that stands for buy, rehab, rent, refinance, and repeat. It is an investing method that follows the steps in order, where an investor purchases a rental property and renovates it to increase its market value and charge more for monthly rent. Once the space is rented and begins generating monthly income, the investor refinances and uses the newly acquired capital to repeat the process by purchasing another rental property. This BRRRR strategy is meant to create long-term wealth and focus on passive income generation, unlike fix and flips or new construction investments. For investors looking to expand their rental portfolio with Jacksonville rental loans, contact us today.