How to prepare? (Florida Panhandle)

Question

Panhandle investors! I grew up vacationing in this area yearly and love it. Hard to beat the beaches, and of course, who doesn't love The Back Porch in Destin and the Wharf in Orange Beach? Been seeing a good bit of investment opportunity from PCB to Gulf Shores. My goal is to live and flip a property and decide on an LTR or STR after some minor cosmetic work has been done, and I've completed my homeowner obligations for an FHA/ Low Money loan. My main priority now is saving around $20k, and I will be shopping within the $300's-low $400's. I would love any input or general stories about investing in this area! Like is that a reasonable budget? Are there any strategies that have been working well here? ETC. Thanks, y'all!

Nikita Odnoralov · Answer

Hey Jordan. I bought a fixer upper 3 min walk from the water in Panama City Beach this year in March. It's on track to gross me over $70,000 this year and I started in March...I love the area. My place is 1,200 sq ft, has a backyard and is a 2 bed 2.5 bath townhome. I am an investor and also an agent in FL though I meander between CO and FL. I would love to help if you need to talk shop or ideas or whatever. I have learned so much. My place is a townhome on the east side, no HOA, and needed minor cosmetic repairs. I paid $333K and right now I'm seeing similar units dipping under $300k. So this winter will be a great time to jump in. I plan to buy another one or two in the PCB area myself this winter.

Marshall Leipprandt · Answer

Account Closed Hey Jordan, I think that there are certainly some opportunities in the Panhandle. I am a realtor in the area and also own and self-manage 2 STR homes in Miramar Beach. I really like the FL panhandle as a whole and think that it will continue to grow steadily over the years.

I like your strategy of building up some capital and using it for a low money down, owner occupied loan product. In my opinion, this is overall one of the best ways to get started. You can definitely get into a small home or a decent condo at that $300K-$400K price point. The biggest issue with your budget will be some of the things that you really can't control like the cost of homeowner insurance / flood insurance across FL in general, possible HOA fees in a condo building, PMI (if applicable), etc.

I am planning to do an owner-occupied investment here in the next few years as well so I think that it is a strategy worth pursuing for sure.

Feel free to email or DM me if you have questions about any areas or want any other insights. Good luck!

January Johnson · Answer

Your money will go farthest in PCB, hands down.  You can get condos starting in the mid $200Ks, but they will require 25% down.  I can get you townhomes and SFRs (hello 10% down second/vacation home loan!) that are walkable to the beach staring in the mid-$300Ks and mid-$500Ks, respectively, and I know all of the STRable areas from PCB to Navarre Beach.

Let me know if you have additional questions.  Happy to jump on a call with you.  My calendar link is in my signature line below.

Albert Sousa · Answer

Jordan, I am a RE investor and FL Mortgage Broker. Buying a property as an owner-occupied property is the best way to save on down payment costs and take advantage of lower interest rates. My wife and I used that strategy for our first primary residence that is now a long-term rental. Some condos are going to be tougher to get into with a low down payment than others based on how their HOA is structured and how owners use their condos(investments, owner-occupied, etc.) Depending on your personal finances, 3% down conventional financing may be available and cheaper money for you than FHA financing. Would be happy to chat with you further if you're interested. Happy hunting!

P.S Having 20k saved will be position you strongly, however you can get into homes for less dollars out of pocket if you'd like to move faster.

Ricardo Hidalgo · Answer

Navarre, Fort Walton beach, Niceville and Panama City beach has a strong long term rental market. If you can find something that needs comestic repairs you can move out the next year and rent it out by the month if fully furnished to earn 15-20% more than your standard rental. Regardless you would have a good equity positions and close to the 1% rule if rehabbed.

How to prepare? (Florida Panhandle)

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