by Optivo GroupHow to Get Maximum Return on Rental Properties in Florida?
When it comes to buying and owning professional rental property, Florida is a fascinating place. On the one hand, demand for homes in Florida, particularly single-family homes, has been steadily increasing. Despite the increased demand, this does not always translate into more home buyers.
Instead, despite Florida’s relatively cheap home prices statewide, many people still prefer to rent rather than buy. As a result, rental rates have risen dramatically.
Florida has a trifecta of economic development, low unemployment, and population expansion, not to mention great weather! That all sounds wonderful, but how do you pick the ideal market to buy your rental property if you’re an out-of-state real estate investor?
Today, in this blog, we’ll discuss how to earn maximum return on rental properties in Florida as a professional property management company! So, without any further ado, let’s get started!
Earn Maximum Revenue By Apartments in Jacksonville!
The city of Jacksonville, Florida, is a lovely place to invest in real estate. Apartments on rent in Jacksonville are a great place to start earning your initial return on rental properties. Many real estate investors neglect this specialized sector.
According to several studies, the real estate rental market is critical since inhabitants come to the region to pursue a suburban lifestyle, lower and more affordable houses, and a better quality of life.
Between 2013 and 2018, Jacksonville’s population increased by around 8% and 24 percent since 2000. In addition, the typical home price in Jacksonville is $210,000, which is 33% less than the national average of $278,900.
Jacksonville has one of the highest rental yields in the country. Rent increase is also a good thing. The city’s 2.6 percent growth is higher than the national average of 0.5 percent year over year.
Jacksonville boasts a bustling commercial district with a diverse range of enterprises and work possibilities. Furthermore, the housing market in the city provides an attractive environment for investors, particularly for turnkey real estate transactions. Experts expect a favorable trend in the near future, and purchasing a 2 bedroom apartment in Jacksonville, FL looks surely a wise investment.
Important Statistics to Note Before Buying A Rental Property in Jacksonville!
Before you head on to buy apartments in Jacksonville, make sure to keep the following statistics in mind!
- Median list price – All Homes: $210,000
- Median list price – Condo: $134,950
- Rent list price: $1,250
- Median rent: $1,345
- 1-year job growth rate: 3.2%
- 5-year population growth: 8%
- Average 30-year fixed mortgage rate: 4.40%
Let’s get to know what other sources say about the statistics of commercial property on rent in Jacksonville!
- According to MacroTrends, the current metro area population of Jacksonville is 1,297,000 people.
- According to RentCafe, the average rental rate in Jacksonville, Florida, is $1,162/mth.
- The Jacksonville area’s typical household income is $54,701, according to the Census Bureau of the United States of America.
- Jacksonville’s average house price, according to Zillow, is $218,194.
The reasons for all of this development and expansion are several. The cost of living in Jacksonville is way too lower than the national average. We may also add the standard Florida benefits, such as warm weather, a favorable business atmosphere, and no state income tax.
Here are some key takeaways that will get you more and maximum return on rental properties in Florida! Read on to know more.
Key Takeaways!
- You may use the cap rate to compare different real estate investment possibilities.
- By dividing the acquisition price by net operating income, the cap rate is determined.
- Investors should aim for a rental that generates at least 1% of the purchase price in gross monthly rent as a general rule of thumb.
The Bottom Line!
So, by now, you must have a clear glimpse of how you shall earn maximum return on Rental Properties in Florida! So, what are you waiting for? Start your investment by booking your apartments in Jacksonville now!