I currently live in this area and purchased a live in flip with a VA loan. I also have a couple rental properties. I have a few things to add.
1. Renting is not bad advice if you want to play it safe, however that will mean delaying your investing career. If you want to get started...
2. Live in flip is a great option. With the area heavily depending on a growing military base, I see it as lower risk for price fluctuation compared to other markets. Now there is always risk, but if you buy right there will always be a demand for family housing in this area, with a strong rental market as a back up plan. My advice is look for a 3/2 that needs cosmetic work, which you should be able to get a VA loan for. Stick to niceville, valp, and nicer areas of fort Walton where people will always want to live. Destin is a little more volatile but that's where my flip is.
3. Consider air bnb. With a strong vacation area such as this it wouldn't be hard to buy a SFR, and then air bnb extra rooms for supplemental income. My neighbor is in the military and does this. In this case you may want to look more towards the touristy areas, such as Destin or okaloosa island.
4. I think everyone would agree, multi-families are the golden egg, however hard to find. I have seen them here but if there are decently price they almost always go to cash buyers quick. There are some in crestview though. While crestview has some areas to avoid, it is a growing market with better cash flow numbers than fort Walton/Destin/niceville. If you really want multi family look there.
Good luck!
