Ground-up construction projects involve building a home or entire development completely anew from raw materials—which offers a virtually uncapped degree of flexibility from an investor’s perspective. That means you can customize your new investment property to meet the current demands of the market. Depending on the existing characteristics and volatility of the local real estate market and the current supply of available properties, ground-up construction can be both cheaper and more profitable in the long run than traditional fix-and-flip strategies. An essential factor in any investment move that will ultimately dictate your return on investment is location. With an over-abundance of transactional activity in several major national markets, it can be challenging to select the area that is best-suited for your individual investment strategy. For investors planning to concentrate on properties in Florida, here is a closer look at some of the best up-and-coming local markets that are primed for growth. Take advantage of the opportunity to lock in a reliable stream of passive income today with Gauntlet Funding’s fast and flexible ground-up new construction loans in one of these amazing locations!
Jacksonville is one of the top cities in the nation when it comes to investing in real estate—whether you plan to rent out your new build or re-sell it for a profit. The market data certainly supports the hype surrounding the Jacksonville real estate market. The average rental yield is one of the most profitable in the entire country. The average home listing price is around $170,000, which comes in at 15% below the national average. Rent yields have jumped an astonishing 2.6% year-over-year—and if you look at in-demand local markets like Butler Beach, you could expect to see a 10% increase in rental income in the upcoming months. What’s more, there is plenty of available jobs and the local population has increased nearly 24% over the past two decades. The steady influx of job-seekers and retirees ensures that your new construction won’t linger vacant on the market for long, making it the ideal spot to build an investment asset to round out your portfolio.
Fort Lauderdale is another extremely active market that savvy real estate investors should consider expanding their asset collection in via a ground-up construction loans. For years, the Fort Lauderdale metro region saw exponential growth, which served as a major draw for families from the entire Eastern seaboard. The median rental price per month is $2,122—a number that is fully anticipated to increase steadily for the foreseeable future thanks to continued development in the area and a limited supply of housing options for the steadily-growing population. This makes now the perfect time for investors to get involved in this market before property prices make investing in the area untenable. You can still find land priced at relatively affordable amounts that are ideally suited for constructing your dream investment property. Based on its affordability, expected growth and strong economy, Fort Lauderdale checks all the boxes from an investor’s perspective.
Gainesville is developing into a booming market for Florida investors. The city is one of the most vibrant college towns in the entire state. The student population means that there will always be a high demand for affordable housing options. The area is renowned for its cultural features, museums and nightlife as well as its outdoor recreational opportunities. The average property value is around $265,000 and the typical rental yield is a healthy $2,444 per month. With a cap rate of 5%, the local market is primed to give investors an optimal return on investment.
Looking to get into the ground up construction space in Florida? Gauntlet Funding is a trusted Florida hard money lender and can assist you with your next deal.
The Best Florida Markets For Ground-up Construction Loans | Gauntlet Funding – Melville, NY