1st Time Buyer (House Hack)

[Dustin Sanders]

Hey y'all,

I'm planning on buying my 1st single family home in Spring 2020, and was looking for advice for the most you would recommend spending. It's a small city market (Pensacola, FL), and I'm not looking for a fixer upper. Looking for a 3+ bedroom in a good condition in a decent location. The median home value in Pensacola, FL is $145,000.

Any advice will be helpful!!

Thanks,

Dustin

[Mark Manship]

@Dustin Sanders; unsure how big of an area you're encompassing in your search, as "Pensacola" spans quite a bit of land, but given your 3+ bedroom criteria and desire(?) to stay around/below the median home value as you mentioned, you'll most likely be pushed out and away from the downtown (and surrounding) sector and will likely find homes that need a little, if not a lot of love.

That being said, I wouldn't shy away from 32501/32502, especially those areas west of downtown (aka "Garden District, Tanyard, Belmont-Devilliers, Sanders Beach, North Hill Highlands"). See the area bounded by:
- North: Maxwell St.
- South: The Bay...
- East: DeVilliers St.
- West: Pace Blvd

You might find a few 3BR properties in need of a good refresh/rehab in a fast-growing area close to all the Palafox/Belmont activity. 

Pricing is going to vary wildly between NAS Pensacola and Scenic Hwy/I-10, but as others in this thread have mentioned, the market is UP...big time: @Dylan H. is right that fairly-priced properties typically have multiple offers within 24-48 hours. @Matt Jones is correct that median prices for your 3/2's are nearing the 200k mark, and that includes properties that need quite a bit of rehab...land alone in some areas (East Hill, North Hill, Cordova Park, etc.) is selling for $180k/lot. 

That's not to say finding a move-in ready home is impossible, but I would recommend expanding your search to include sound properties in need of an update; teaming up with an agent or lead-gen partner of your choice that is zeroed in on your numbers/criteria will give you a shot at being first to the scene. For example:

"I'm looking for...
- 3+BR/1+BA single family homes

- >1200sqft

- in the 32501 (or by other means bounded) area

- Listed for <$150k and/or <$100/sqft

- That will accept conventional/cash financing

- That require XXX level of rehab (cosmetic, cosmetic+, full gut)"

Better yet, give your agent/partner an idea of the capital you have readily available and any experience/contacts as part of your renovation portfolio ("I've installed flooring/tile before," "I've redone a few kitchens," or "I don't mind doing a LOT of demo and landscaping."). That will allow the individual to seek out properties that fall within your comfort/financial capacity level with regards to scope of work. 

If you're set on move-in ready properties, seek out townhomes and/or smaller (<1200sqft) new construction; they exist, but again, they sell quick (typically before construction is complete). 

Hit me up with any questions you might have - I'd love to