Best Areas in Northeast Florida to Invest in Real Estate

Northeast Florida, with its main city of Jacksonville, is a great place to invest in real estate with several types of properties available, diverse neighborhoods, and a growing population.

The area includes Duval County, St. Johns County, and Nassau County which are all great areas to consider for your next investment property.

In this article, we will explore the best areas to invest in real estate in these counties with an added focus on multi-family properties and short-term rentals.

Duval County - Best for Fix & Flip, Multi-Family & Short-Term Rentals

Duval County is home to the city of Jacksonville, the largest city in Florida and one of the largest cities in the United States.

Jacksonville is a growing city with a strong economy, diverse population, plenty of things to do, and miles of beaches with great weather. The city has a strong demand for rental properties, and according to Redfin, the median home price is less than the national average, making it a great place to invest.

In Duval County, the neighborhoods of Riverside and Avondale are particularly popular among investors due to their proximity to downtown Jacksonville and their charming historic architecture. There are several multi-family homes available in these areas to include duplexes, triplexes, and quadplexes. However, due to their age, many of these properties need work to include updating electrical and plumbing. As a result, this is a prime area for house flipping.

Additionally, the area around the University of North Florida is also a great place to invest as it has a high demand for student housing.

Finally, the beaches (Jax Beach, Atlantic Beach, and Neptune Beach) are always good investments simply due to location.

Jacksonville Beach has become popular with real estate investors due to its favorable regulations for short-term rentals.

Jacksonville Beach allows short-term rentals which has become a favorite area for capital investment in multi-family units. There are several former apartment complexes of 4, 8, and 16 units that have been turned into short-term rentals in Jacksonville Beach. The demand for these types of properties has only increased values for all properties in Jax Beach.

St. Johns County - Best for STR & Buy-and-Hold

St. Johns County is located just to the south of Duval County and is home to the city of St. Augustine, the oldest continuously occupied city in the United States.

St. Augustine is a popular tourist destination, known for its historic architecture and beautiful beaches. The city is also home to the Flagler College, which has a high demand for student housing. The neighborhoods of Lincolnville and Uptown are popular among investors due to their proximity to downtown St. Augustine and their charming historic architecture (similar to Riverside and Avondale in Jacksonville).

St. Augustine was recently named by Vacasa as one of the top 25 places to buy a vacation home due to its cap rate in comparison to other vacation rental markets.

Northern St. Johns County is also popular for investors as this suburban area has some of the top public schools in the nation and the top public school system in the state of Florida. Growth is tremendous in this area, providing long-term investor returns for buy-and-holds.

Nassau County - Best for SFH Long-Term Portfolio

Nassau County is located just to the north of Duval County and is home to the city of Fernandina Beach, a popular tourist destination known for its beautiful beaches and historic architecture.

The county is also home to the Amelia Island Plantation, a popular tourist destination that has a high demand for short-term rentals. The neighborhoods of Old Town and The Isles are popular among investors.

Likewise, the town of Yulee is popular for single family home investors as this area is also prime for growth. Nassau County also has relatively high ranked school systems.

A Note About Short-Term Rentals

In all these counties, short-term rentals are becoming increasingly popular, especially with the popularity of vacation rental platforms like Airbnb and VRBO. These platforms have made it easy for people to find and book short-term rentals, making it a great way to generate income from your investment property with returns that range from 50% to 100% more than leasing the property annually.

However, it is important to note that there may be specific regulations and rules to follow in each county, so be sure to research the local laws and regulations before investing in a short-term rental property.

Bottom Line

In conclusion, northeast Florida is a great place to invest in real estate, with a diverse range of properties available and a growing population.

Duval County, St. Johns County, and Nassau County are all great areas to consider for your next investment property while considering a possible focus on multi-family properties and short-term rentals. As mentioned, it is important to research the local laws and regulations before investing in a short-term rental property.

With the right research and due diligence, you can find the perfect investment property in northeast Florida that will generate a strong return on your investment for years to come.

Are you thinking of investing in real estate in Northeast Florida? Contact me to get started on finding your next investment property.

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ABOUT THE AUTHOR:

Rob Hastings is a top-producing real estate agent in Jacksonville, Florida and helps buyers, sellers, and investors of homes and property throughout all of Northeast Florida. He works with his wife Nancy as a husband-and wife-team with Keller Williams Realty Atlantic Partners. When not helping his clients navigate the real estate process, Rob enjoys working on old Corvettes and playing music (guitar and piano). A U.S. Naval Academy graduate and former Naval Officer, he also loves boating and simply spending time on the water.