All Forum Posts by: Matt Jones

I have been investing in Pensacola since 2015 and Hurricane Sally in September of 2020 was my first natural disaster as a landlord and the first major event for this area since Hurricane Ivan in 2004(although there was flooding in low lying areas due to heavy rains in 2014 the impact was less widespread). I had two properties with significant roof damage and had to file an insurance claim. The hurricane deductible in an area like Pensacola is typically 2% of the amount that your property is insured for but can be adjusted up or down to some degree. I was aware of this higher deductible risk and I make sure to keep a little extra cash in reserve through hurricane season every year. The surprise expenses were clean up and fences. Insurance doesn't always cover these items, at least not fully, and if your property wasn't damaged then it won't cost enough to file a claim but it will certainly impact your bottom line. EVERYTHING after a hurricane is slow and expensive. The pain in the butt factor is very high and it was not a fun experience as a landlord. That said, I had been saving CapEx funds toward a new roof on my quadplex that was damaged in the storm and that money paid the hurricane deductible on both properties that were damaged and my extra expense for cleanup and fences at other properties. All in all I should come out even or slightly ahead with two properties that have a new roof compared to paying for the roof I had already planned to replace in the next year or two. I'll probably keep a little more cash in reserve after the experience and I will be sure that all of my insurance policies cover loss of income.

@James Strain. Short term or long term rentals?  I know a lot of local companies but would recommend different PM’s depending on type and location.  Feel free to send me a message with specifics.

I also have Federated National on a few properties, they are usually but not always the cheapest.  I definitely recommend checking with a local insurance broker.  I have worked with Cynthia at Tim Wise Prudential and Jordan at Goosehead in the past and been very happy with both.  

Section 8 / Hud Vouchers are handled by the Pensacola Housing Department on Chase St.  I dealt with them on a few properties I took over when I was managing properties for other people in 2018/2019.  They are not super responsive but worked with us well enough.  I recently had to advertise two properties for rent while changing property managers and I received lots of inquiries asking if we accepted vouchers so I know demand is out there for voucher friendly rentals.  

https://www.cityofpensacola.co...

I'm not sure if BP allows posting contact info so google Pensacola Housing Department if the contact info for them doesn't show up above.

Hi @Account Closed, there is no requirement for owner occupancy prior to renting your property in escambia county(Pensacola).  I am a real estate agent here and I have short and long term rentals.  I actually have not run into an hoa with that requirement either but do know of several that do not allow short term rentals at all. 

@Michael Gainey Yes, there are several Pensacola area investors on BP, we have a few active REIAs and a lot of investors active in our market.  What kind of investing do you do/want to do?

I'm with @Joe Villeneuve, I'm taking the cash flow all day.  Plus, Pensacola does not have NO appreciation it is just lower appreciation than a market like Miami.  The last 4 years we have seen very significant appreciation in the Pensacola area but historically it is low compared a place like Miami.  That said, Pensacola is thriving and I'll take the cash flow and bet that I'll also see appreciation(because I am definitely making money between the cash flow, mortgage paydown and tax deductions) rather than buying in a market where I have negative cash flow and still am only betting on appreciation(Where Im definitely loosing money unless significant appreciation, which isn't guaranteed, wipes out my loss when I sell or refi).

@Raymond Turner I think @Account Closed gave you a very solid analysis so my addition will be brief.

If your property in Washington only cash flows a few hundred per month and has that much equity it may not be a great rental long term if your desire is to scale to 20 doors over the next decade.  If you do a heloc or cash out refi to generate a downpayment on a property in another area your original property may not cash flow at all.  Let's assume that your "few hundred" is $300 per month or $3600 per year that is only a 2.5% return on equity.  Unless there is a reason that you would really like to hold the Washington property you may want to consider a 1031 exchange.  You could probably use that $140k in equity to make a 25% down payment on 3 solid rentals in a less expensive market that would cash flow 2-3x what your current property is cash flowing.  

As far as specific resources in Pensacola, FL I am happy to share wholesalers, contractors ect if you want to send me a DM.  I don't want to post them here as people tend to search for these things and the resources change year to year.

Thanks Matt!

Jonathan- I saw your message and sent you a text last night, I look forward to connecting! 

@Kevin Semma congrats on your decision to start investing in real estate!  Pensacola is a great market and has a strong community of investors.  Having a year to learn is plenty of time to gain a really strong knowledge base before you get here.  Here are some of the resources that I don’t see mentioned too often that really helped me start with confidence and that made me money(or saved me from losing it) on my early deals while I was gaining experience:

*The first 150 episodes of the BiggerPockets podcast.  There were great tips and strategies in the early episodes that were very actionable.  If you haven’t listened to the early stuff it is worth going back and checking out.

*Flip by Rick Villanova & Clay Davis - a good bit of this will be dated now but the information on rehabbing a property is excellent and if you plan to BRRRR or do any kind of renovation this book will help

*ABC’s of real estate investing by Ken McElroy - this book really helped me understand how to evaluate a property and run solid numbers