Advice on investing/ flipping in Pensacola?

Question

My husband (and children) and I are planning to move to Florida in a month or so. We are seriously considering Pensacola to flip homes.

We have been part time investors for 20+ years (mostly rental homes) and my husband has been a general contractor/ home builder for the past 10. We have experience.

I've been doing all the research to locate a viable area to live in and for flipping. Does anyone here have experience in Pensacola or the surrounding areas, and is Pcola a good place for house flipping? Or is another area in Florida recommended?

Also is it a good place to raise a family?

Thank you!

William Allen · Answer

@Anthony Jenkins, sounds like a REIA pitch to attend a weekend boot camp. She located in Pensacola?

Matt Jones · Answer

@Jennifer Ross  I think @William Allen summed it up very well.  We have a strong rental market and this is a good place to be a landlord.  I have yet to have any trouble filling vacancies for my rentals, even in the winter.  The market is hot so you can turn your flips pretty quick but not scorching like Nashville or Denver.  MLS inventory is currently very low in this market and good on market deals go very quickly so if you are planning to flip full time down here I would recommend a marketing plan to get some of your own deals or getting to know a few wholesalers like @William Allen.  I had trouble buying enough deals in the later part of 2016 between the MLS and foreclosure auctions and will be adjusting my strategy for 2017 to include marketing and wholesalers.  Good luck with your move and don't hesitate to contact me if you need a realtor when you get here!

William Allen · Answer

@Jennifer Ross, I am a wholesaler, flipper and landlord in Pensacola.  I like the area because it has a lot going for it and the prices aren't outrageous.  There are also a decent number of investors in the area, a lot of buy and hold landlords because the rental market is very strong.  There are a couple of flippers doing some volume but nothing crazy like other parts of the US now.  If there are, I would love to meet them but I only know a few who are doing more than a dozen a year.  I have been successful flipping here and there are a couple REIAs and meet ups full of successful flippers.  A lot of people still find decent spreads on the MLS too, just not that prevalent anymore.  I don't think the competition for deals is anywhere near as bad as the other big cities.

I like what it has to offer for families too, nice beaches, schools are very good in areas of Santa Rosa County (Pace and Gulf Breeze) and parts of Escambia County.  There is a lot to do and access to I-10 for traveling.  Going north can be a bit of a pain to get to I-65 and the airport is a bit small but Southwest is flying out of there now.  Big military town and a lot of growth in the colleges, hospitals and Navy Federal is establishing a large presence here.  There are also a lot of changes going on downtown and a lot of out of state investors buying property in the area.

Send me a message or email if you want any more information.  Good luck on your search!

Caleb Pecht · Answer

@Jennifer Ross I am looking to do my first flip (ever) in the Pensacola area and was wondering the same thing. A buddy of mine has been successful flipping in East Hill and also over near the airport. The main difference that I can see is the cost to acquire the property on the east side vs other areas of Pensacola.

Great question and i'm sure some Pensacola flippers will chime in!

William Allen · Answer

@Jennifer Ross, I think the definition of "priced correctly" may be why.  I have learned my lesson there over time.  I see a lot of flippers that go into a project and have their ARV then when it's finished they think it's a good idea to add another $15-25k on top of that.  So, they sit on the market instead of move quickly.  That has been one of my biggest takeaways over the last few years.  Price it lower than the other houses in the area and make them a little nicer.

I'd be interested to hear what realtor you spoke to if you don't mind, can PM me if you want.  There are thousands here like everywhere else so make sure you are getting the right information.  I would speak to the flippers who are working here to get the best advice.  I think the average DOM in this area is about 70 +/- so whoever you spoke to isn't off on that front.

I wouldn't trust much of what a wholesaler says either as they will profit on you buying here (me included), get as much information from multiple sources as you can.

Jennifer Ross · Answer

I just spoke with a Realtor in Pensacola who said, in his experience, homes in desirable neighborhoods that are priced correctly are taking 30-60 days to get offers.  Is that the norm, is there a reason yours are going quickly, William?

Anthony Jenkins · Answer

@William Allen she is located in Ocala, FL but, she travels a lot throughout the year.  I know she will have 5 day boot camps this year in Ocala and one near D.C.  I'm going to the one in D.C. in September.  You can find out more info on her website @RobynThompson.com.

Matt Robinson · Answer

No, @William Allen, she's in Orlando or somewhere in South Florida I believe.  She's been around on the speaking circuit for ages.  Most of the feedback I've heard has been positive.

Anthony Jenkins · Answer

This past weekend I met a woman named Robyn Thompson.  She is known as the Queen of Rehab.  She is a very successful real estate investor and she is located in Florida.  She travels a lot teaching others how to be great at real estate.  She is someone that can definitely help you.  Look her up.

Arianne L. · Answer

@Jennifer Ross Pensacola is a great place to invest for both buy and hold and flips.

Definitely get on @William Allen's list. In fact he has a great primary residence for you on the water on his list right now :)

Advice on investing/ flipping in Pensacola?

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