Coastal Bungalow in Pensacola

[Paul Weathers]

Investment Info:

Single-family residence buy & hold investment in Pensacola.

Purchase price: $41,000
Cash invested: $66,000

Coastal Bungalow with laminate floors throughout, 3BR/1BA with LR, FR, Clean Kitchen with breakfast bar, (2) brick fireplaces. Low maintenance yard, with brick patio in backyard. Close to Pensacola's core business areas- 3.5 miles from Downtown, 9 miles to Pensacola Naval Air Station. Purchased property via a Tax Deed Sale for $41k, full renovation of $25k...$66k All in....cash flows $1100/mo.

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

Close to downtown, close to Naval Air Station, close to beaches.

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

Tax Deed Auction (winning bid)

How did you finance this deal?

Cash

How did you add value to the deal?

Full renovation property renovation

What was the outcome?

All In...$66K....cashflows $1100/mo....net cash flow after all expenses (taxes, insurance, property management, lawn service) is $686/mo.

Lessons learned? Challenges?

Finding a good contractor was difficult. I finally found a good one, he was small 2 person operator...so he didnt have a lot of overhead to "bloat" the price of the project. It took a little longer than expected, but totally worth the extra time.

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

Realty Masters of Pensacola is the property management group I use and they have been fantastic to work with and has been an invaluable resource for me.