First Purchase in Pensacola, FL Area

[Tim Hershberger]

Investment Info:

Single-family residence buy & hold investment in Cantonment.

Purchase price: $272,500

Purchased a 4 BR, 2 Bath Home (Built 1992) initially for the family. 2100+ sf, screened in pool, storage shed, 2 car garage. Repainted the entire house ourselves, enclosed one room with French doors to make a 5th BR or office, changed all the ceiling fans, door knobs to brushed nickel, added an above stove microwave. Remodeling bathrooms. Will turn home into either an Air B&B or long term rental in Summer 2022 after our son graduates HS. Comparable houses in the neighborhood are easily going for $300K + and more, so we're extremely happy.

What made you interested in investing in this type of deal?

Needed to get out of "crazy" Washington DC. This gave us the opportunity to move the family back to Florida so our son could finish his last year of High School in-person. Plus it places us in our preferred investment area. Once graduation happens we will convert this to a rental (Air B&B or long-term).

How did you find this deal and how did you negotiate it?

We made the decision to move on a Friday evening (9pm EST). Pulled up the internet and it was one of the first houses we saw. Texted a realtor we'd met through an Air B&B rental and told her we wanted to buy. Put in an offer first thing on Saturday morning and were accepted that evening. Many people made offers so we had to move fast. Great price and home appraised for much more than we paid.

How did you finance this deal?

VA since we intended to live in this as our primary residence to start. Eventually we'll move and change to a rental.

How did you add value to the deal?

Moved quickly, offered over the asking price (but not crazy), offered more earnest money than normal, told them we would accept the home "as is" as long as there weren't major inspection issues. Also let them know I was retired military, had a great paying job and would close as quickly as possible.

What was the outcome?

Whatever we (and our realtor) offered must have been well received. Although we were outbid the accepted our offer the same day. Competition for the property was fierce but we were blessed to get accepted.

Lessons learned? Challenges?

Understand what you're looking for (price, style, location, etc..) and be ready to move! I had a few exchanges with our realtor who offered modifications to our offer based on her expert knowledge of the area. If your realtor is good...listen to her/him. Get your offer in. You have plenty of time to adjust (including backing out) afterwards. In today's market, if you drag your feet you'll lose.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We have a great realtor named Cinnamon Reed (The Reed Group). Extremely knowledgeable and is an investor herself so she understands both the market and her buyers/sellers. Highest recommendation.