All Forum Posts by: Matt Jones

Check with Cynthia @ Tim Wise Prudential or check with Jordan at Goosehead.  If the property isn’t in good condition you can always get a cash value or builders risk type policy with Tapco or Lloyds.  

@Jessica Parker we do rent our townhome most of the time but we are using it for ourselves for a week here and there that adds up to about a month out of the year. Insurance, occupancy & pricing are probably just enough different that it would be worth talking with someone that has Airbnb units in the areas you mentioned. Reach out to my friend @Jerrod Mink, he is doing a great job with Airbnb’s near downtown. I sold a home to an investor in April that’s right downtown and is already outperforming all of the rental projections we had done so I know that demand is still very strong.

Hey @Jessica Parker the answer to your question will differ depending on if your looking for something at the beach or in town.  Which did you have in mind?  My wife and I own a townhome at the beach but several of my past clients and friends own in town so I’m happy to shed a little light on both and connect you with one of them for anything I can’t answer.  

@Justin Rush Pensacola is a great investment market for long term buy & hold, flips, wholesaling & short term rentals. We have a strong base of investors and wholesalers that are generally helpful and can help you source deals in addition to what you'll find on the MLS. My primary investment strategy is long-term BRRRR investor but my wife and I bought our first airbnb last year and it is going really well. I am also a Real Estate Agent and I'm seeing more demand for airbnb's from buyer's and renters. Covid, the lack of housing inventory and probably the increase in the number of in town properties used for short term rentals have really put a squeeze on long term rentals and driven rent prices up significantly which is offsetting the higher price of properties here and helping investors stay profitable. If you settle on the Pensacola Market(Pensacola, Gulf Breeze, Perdido Key, Milton, Pace, Cantonment, Navarre) I'm happy to share some attorneys, property managers, handymen, ect...

@Jessica Parker I may have some small & medium mobile home parks coming available soon 

@Jeff Morelock I haven't had to waive any inspections all together but I am advising buyers to shorten the inspection period in many situations. I also discuss strengthening EMD, reducing or eliminating any seller concessions and writing their offer on an as-is contract. For buyer's that are financing, having a strong pre-approval and a lender that is capable of closing quickly is important too. In Pensacola my lenders can close faster than the survey companies can complete a survey in this crazy market. Also, as the agent I try to make the offer as clean and streamlined as possible and I think it's very important to write your best offer up front in many situations these days to try and avoid bidding wars where you can.

In the Pensacola area market we are starting to see some things that you hear about in bigger markets and the west coast like agreeing to pay over appraised value, an increase in cash buyers and homes selling for way over the list price($70k on one that closed last week, that's unusual here) so maybe waiving inspections will be a necessity soon but I have several buyers under contract and none have waived inspections so far.  No offers on my listings this year have offered to waive inspections either.  

I know several local wholesalers that require an upfront non-refundable EMD of about $5k which feels a lot like waiving inspections. Certainly that impacts investors here but that has been going on for a few years.

Downtown Pensacola real estate is booming and downtown multifamily is in very high demand.  It sounds like you will probably have a very nice profit with the property so I think it’s smart that you are asking this question.  If you plan to hold the property very long term(20 years) then taxes are less important but if you think that you might not keep it that long then locking in your profits while the market is high and you can do so tax free is a reasonable strategy.  Having a large amount of cash and no definite timeframe also gives you a better chance to get a good deal on your next investment than working within the rigid timeline of a 1031 exchange.

@Tim Hershberger as long as you plan to live there first there are several local lenders that offer a 0% down conventional loan including Renasant Bank, Rapid Rate Mortgage & Regions.  DM me if you need contacts for loan officers.

@Thomas C.. Google “Escambia County Crime Map” and it should bring up an interactive tool that will let you search by address to see what kind of crime and how much is happening around a property that you are considering.  Pensacola is a great place to live and to invest.  Good luck with your purchase!  

Hey Trevor - I know Milton well.  It sounds like you may have a land use question in which case I can connect you with the right department within Santa Rosa county but if it's something else or a question of value I'm happy to answer those questions as well.  Just send me a DM.

BRRRR seems to be the most popular investing method these days and while I am a fan of the BRRRR strategy it is not for everyone. If you work full time, have a family and are not interested in spending a significant amount of time hands on in real estate then you may want to consider more turn key properties. It's also much easier to find move in ready properties than it is to find properties that fit the BRRRR model. The primary benefits of BRRRR are replenishing your working capital through refinances and creating equity through your renovation. Buying move-in ready properties is a slower process but ultimately much more passive. With $150k cash you could buy between $600k - $750k in properties(assuming 20-25% down payments). As your properties generate cash flow, go up in value and the mortgages get paid down they will generate additional available funds for downpayments even if you don't save money from your day job towards new rentals. So, still a very nice strategy over the long term. The questions I encourage you to ask before choosing your strategy is what is your ultimate goal, how much time do you have to dedicate to real estate and how hands on do you want to be in your investments? The best strategy is the one that fits the answers to those questions. Welcome to Pensacola, it's a great place to live and a great market to invest in!