All Forum Posts by: Matt Jones

@Luke Hyder it sounds like you could use a design consultant although I can't recommend anyone specific for that service.  You could also work with a few professionals like a surveyor, landscape architect and/or engineer to help.  A past client of mine is a very successful landscaper in Pace, you might start by just consulting with someone like that.  DM me if you want his info.  

STR inventory in Pensacola exploded between 2020- and now which has driven down occupancy per unit and in some cases rates. Personally, I'd be very conservative in my revenue projections on something like this just in case this trend continues. The RV route or a mix might be the best bet these days. If you aren't familiar with them, check out Cold Water Gardens in (North)Milton for ideas on layout and competition. It's currently for sale.

You are in the right place to learn and get started with real estate investing! I started listening to the podcast and posting here a decade ago and it's been transformational for my life and business. When you say multifamily are you talking about small(residential 2-4 units) multifamily or larger properties? Pensacola and the surrounding area(Pace, Milton, Navarre, Perdido Key, Cantonment, Gulf Breeze, etc..) is a great market for both LTR & STR investments and we have, in my opinion, very landlord friendly laws for LTR. I was in Mobile, AL when I started but moved across the state line both because I liked Pensacola but also because I thought the landlord/tenant laws preferable here. As you look at different areas that you could invest be sure and look into the state & local laws, it's an important part of due diligence that is easy to overlook. If I can help you in the Pensacola area feel free to reach out!

 I'll second local banks, talk to their commercial banker.  Local and regional banks will loan on about any piece of real estate if the numbers are solid and you have a solid downpayment.  I know several in the Pensacola area so feel free to DM me if you need some contacts.  

Welcome @Austin Sargent! 

Pensacola is a great market for investing and especially for house hacking.  I specialize in small multifamily(2-4 units) deals both as an investor and agent.  You're timing is good because the number of multifamily properties for sale has been steadily climbing for the last 6 months and we currently have about double the number of properties for sale that we've had at any time in the previous 3-4 years.  I track the statistics for the multifamily and rental market here and publish a monthly newsletter specifically geared toward investors.  I'll send you a DM with some info that should be helpful in your search.  

Pensacola is a great market for investors. Flips & BRRRR deals are still working here and I'm starting to see better deals from our wholesalers. It's still tough to find on market deals that will work but the off market investing options are solid here.

Welcome @Willie Eshe

Pensacola has a strong market for small multifamily(2-4 units) properties but typically not enough inventory.  The best numbers here are usually on value add deals but depending on your build costs new construction may be an attractive option.  I can give you a list of zoning designations that allow multifamily in both Escambia county and in Pensacola city limits(they are different), if you are interested just shoot me a message. 

Welcome Stephanie! 

My best advice for getting started is to learn to run your numbers thoroughly and then practice on potential properties that you see listed. As you get ready to start investing I'd encourage you to connect with a local agent in the area that you are looking to invest and they can connect you with other professionals you'll need like a good lender, insurance person, property manager, etc... The gulf coast is a great place to invest and receives tons of visitors every year but we are seasonal(you'll earn most of your money March - Oct) and there is a lot of competition so you can't just pick any property listed in the MLS and make money investing here. You'll want to be specific about what type of property you are looking for and(after you do some research and maybe even visit) where you want to invest.
I currently serve some great STR markets like Perdido Key, Pensacola Beach and Navarre Beach and I'm in the process of getting my Alabama license so that I can work in Orange Beach and Gulf Shores as well. If I can help you with anything please feel free to reach out!

If you plan to move back into the property in the not too distant future you might hold out to do a home equity loan or line of credit as an owner occupant so that you get decent terms and a workable LTV max. Giving up a lower rate on the full financed amount with a refi would be much more painful than just having a second mortgage at a higher rate that was big enough to pay off the CC debt.

Hey Matt,

Sorry to hear about your parents and the forced move.  I have a couple of questions and thoughts:

1) What is the interest rate on your mortgage? If your mortgage rate is lower than what you could get today then completing a refi where you borrow more money at a higher interest rate and incur closing costs on the refi could cause the beach house to be even more negative as an investment. Additionally, since you do not live there any more the loan terms you can get for this property as an investment property are almost certainly worse than what you could get as a primary residence. A home equity loan would be better than a full out refi if today's rates are higher(and they probably are) but HELOC's are hard to get on properties that are not your primary residence. They'll want to loan on a lower loan to value ratio as well which makes pulling cash out to pay off your CC debt hard if not impossible. I would be willing to do a free market analysis to tell you what the property is worth if that would be helpful just shoot me a DM.

2) Are you able to make the minimum payments on the debt now?  If so, then it probably makes sense to do so until spring/summer bookings start hitting your bank account.  It's likely that your credit plummeted due to using a large percentage of your available credit.  If you can throw some of the excess income from the high season months at paying down your balances and lowering your credit usage you will very likely raise your credit score.  

3) With a higher credit score and lower balance you could probably consolidate the credit card debt into a lower interest personal loan.  

4) You need to analyze your listing and your pricing to make sure that you get more off season bookings. Maybe look for a snowbird renter? We are a seasonal market and I make most of my money on my STR in the spring/summer/fall but it's not totally dead in the winter so if you weren't getting any bookings or occupancy fell below 50% you need to work to optimize your off season booking strategy.

5) It sucks but if you can't meet the minimum payments and/or your credit doesn't start to recover then you may want to seriously consider selling the property to get everything paid off. 

I wish you the best of luck.  If I can help with anything(other than the payments lol) feel free to reach out.