Rental Property Investor · Murfreesboro, TN · Member since 2014 · 75 posts · 21 votes
Hello BPers in Pensacola!
My business partner and I are taking a huge look at some opportunities in the Pensacola area. What areas specifically should we be targetting??? Any thoughts on what areas to avoid? I have heard downtown and West Pensacola are trouble spots.
Also having a hard time figuring out what comps are... any recommendations?
WOuld love to find a great property manager and agent to help us run comps and find deals as well!!!
Rental Property Investor · Murfreesboro, TN · Member since 2014 · 75 posts · 21 votes
7y
@Jay Helms Buy and hold. Looking mostly to be able to BRRRR as much as possible. I have been told by a few folks down there that finding a contractor is extremely difficult right now given the effects from the hurricane.
Looking for any partners or suggested names you could give me! We have had a few opportunities to pull the trigger on some properties. I really felt like I needed someone I could trust to give me a solid ARV number (as tempting as it is to trust the "zestimate"s that are out there.)
Know any good agents for guys like us who are out of town? Also looking for lenders and property managers if you know any of them as well!
Rental Property Investor · Murfreesboro, TN · Member since 2014 · 75 posts · 21 votes
7y
@JPaul Mills hook a brother up man! Sent an email address to you. I'd love to make it to your mailing list if you have one. I got your number and will try to call ASAP.
As far as comps go, I'm feeling apprehensive to pull the trigger on BRRRR deals just because of wanting to FOR SURE know what the ARV will be for properties. I just would think that relying on any kind of zillow or realtor.com research might not be the best thing to rely on.
For instance we're looking at a home at $45k near the base right now, knowing we'll have to add in around $7k for rewiring (this is a big deal in Pensacola I think right?). If we rent it out, I want to make sure we get as close to an all in of 75% of that appraised value after all the work is done.
Basically what I'm wondering is, how do you look at off market properties with a good estimate of what that ARV will be?
We love the idea of Pensacola for the inexpensive real estate, steady cash flow from military families, and all of that. You saying that is even more reaffirming of what we were thinking. We are from the Nashville area where finding a "1%" deal is next to impossible.
As far as comps go, I'm feeling apprehensive to pull the trigger on BRRRR deals just because of wanting to FOR SURE know what the ARV will be for properties. I just would think that relying on any kind of zillow or realtor.com research might not be the best thing to rely on.
For instance we're looking at a home at $45k near the base right now, knowing we'll have to add in around $7k for rewiring (this is a big deal in Pensacola I think right?). If we rent it out, I want to make sure we get as close to an all in of 75% of that appraised value after all the work is done.
Basically what I'm wondering is, how do you look at off market properties with a good estimate of what that ARV will be?
We love the idea of Pensacola for the inexpensive real estate, steady cash flow from military families, and all of that. You saying that is even more reaffirming of what we were thinking. We are from the Nashville area where finding a "1%" deal is next to impossible.
Youre right about not relying on just a zillow search, but you can easily get sufficient comps by viewing teh properties that actually sold within a specified area and do comps that way. Don't rely on zestimate, but get the recently sold from zillow, filter to last 90 days. Then do some math.
Add/subjtract for condition, bathrooms, bedrooms, size differences etc
You can usually get a pretty close estimate yourself on comps.
Once you have what the ARV is then you can begin subtracting costs. Dont forget financing costs, closing costs, prepaids, etc etc
Roofing costs are VERY high right now. Like twice as much as they were 10 years ago.
Unless you ahve the time and money to direct market to sellers, I'd say get some relationships with some wholesalers.
I bought one from a wholesaler recently, he wanted x, i wanted y, we settled on a price. It was more in his favor than mine, and I spent a little more on the project than i anticipated because of roofing costs and a couple surprises. But I am getting 1pct of rents and when I refi it will be a true brrrr deal. I m currently awaiting seasoning req to be up in feb
I hate to hijack the thread, but just wanted to reach out and hopefully connect with some other Pensacola investors. I lived in Pcola since 2011, and have only recently moved out to San Diego on military orders. I only have one property out in Pensacola of about three years, but am looking to continue to build the portfolio in the area and hopefully connect with some like minded investors!