Help for a Military Newbie in Fort Walton Beach

[Anthony Lilley]

Hey guys,

I've been following BP for about a year now, and am considering buying a house with a VA Loan in the Fort Walton Beach area. My goal would be to make that house a rental when inevitably have to move (2-3 yr time-frame). Right now, the market in this area does not seem to support that goal. Most houses that fit our family's size (4 bedroom/2 bath) are going for between $250K-$300K, but market rents for houses that size seem to be closer to the $1,700 range.

I'm a little afraid of the BRRR method right now, because I have a young child, and another one on the way. I'm not in any particular rush to buy, but since our family is growing, we are talking about moving/buying to accommodate, and it seems to me that VA Loan would be a great way to start our path to passive income when we move. The problem I'm seeing is that none of these houses even come close to the 1% Rule. Is it possible that my area just simply does not support that rule right now with the market conditions?

I'm just wondering if there are any local investors that could shed some light on this/offer me some advice?  Thank you!

[Melissa Jolley]

@Anthony Lilley

You are not wrong. The best advice I can give for our area is to buy ugly. We did this in Bluewater Bay and have done it at other duty stations. You really have to ask yourself....what is the MOST important thing? Try to find a 3br that has enough space to make it a 4br. In our market, 4Br homes are in high demand.

I feel that the likelyhood of meeting the 1% rule in Okaloosa County is difficult IF planning to buy with a VA loan and not planning to buy in Crestview.

Let me know if I can help!