Rent or Buy in Pensacola

[buzznuttz]

I will be renting my home in Tampa before heading off to TBS followed by flight school. With that said, I was thinking about buying another place in Pensacola as an investment (rent out to flight students after PCSing). I'm looking to buy under 130K$. My wife and I are pretty good at budgeting/planning but I was wondering if anyone has done something similar. If so, what are some tips I.e. "stay away from [this] area or don't waste your time..." and so on.

 

[ssnspoon]

I might say stay away from the "less than $130,000" range. You certainly can fine some reasonable properties in that range, but they may need some work, and if you have a family, I wouldn't add weekends of "honey-do" lists to flight school.

I am not saying "don't buy" but be careful.

There are plenty of areas/neighborhoods in the Milton/Pace area at various price ranges, but if you are looking for a rental property, obviously go into it with that mindset, NOT from finding a house you love for your family. Students now are about 50/50 split between single and married, so a nice neighborhood "close" to whiting (within 20 minutes or so) would be a good bet for the family guys. Look around the milton area and even about 1 mile south of base there is a neighborhood where a lot of students live. Pace/Milton on Berryhill rd...look in there.

Remember, you may only be there for a very short time...you don't know if Whiting through primary and helicopters, or NAS Pensacola, then Corpus, lots of variables.

Good luck.

 

[buzznuttz]

Thanks alot for your input. I'll definitely consider your advice.

I might say stay away from the "less than $130,000" range. You certainly can fine some reasonable properties in that range, but they may need some work, and if you have a family, I wouldn't add weekends of "honey-do" lists to flight school.

I am not saying "don't buy" but be careful.

There are plenty of areas/neighborhoods in the Milton/Pace area at various price ranges, but if you are looking for a rental property, obviously go into it with that mindset, NOT from finding a house you love for your family. Students now are about 50/50 split between single and married, so a nice neighborhood "close" to whiting (within 20 minutes or so) would be a good bet for the family guys. Look around the milton area and even about 1 mile south of base there is a neighborhood where a lot of students live. Pace/Milton on Berryhill rd...look in there.

Remember, you may only be there for a very short time...you don't know if Whiting through primary and helicopters, or NAS Pensacola, then Corpus, lots of variables.

Good luck.

 

[samguitar]

I bought a house in Milton when I arrived for API, because we couldn't find anywhere else to live after Hurricane Dennis. Rented it out until I came back as an IP nd lived there again. Just left my IP tour and rented it out again. All my tenants have been flight students except one set...and that set was the only one I had problems with. I've heard nightmare tales from other guys renting to non-military locals. There is significant risk. Reasons I think it has worked out well for me:

1) Location, location, location. 15 min. from base and 35 minutes from Cordova Mall. Some studs show up for API and rent an apt in NE P-cola to be halfway between work and play, and then severely regret the 45 minute daily commute for the cookie-cutter apartment that doesn't really afford them great access to local hot spots. When they select helos, they move to a relatively nice, large house in Milton where they can cook out on weekends and make their briefs on time.

2) Tenants MUST be flight students (or IP's, but lots of them buy instead of rent.) Niche market. Choose location accordingly.

3) Couple of property factors:
a) all ceramic tile, except carpet in BR's.
b) slight upgrades to paint, doorknobs, lighting fixtures, etc. Just enough to make it feel a little less like a transient living hut than most rentals.
c) Big backyard with some nice parts and some wild parts, completely fenced in. Great for dogs (remember the tile floors) and/or kids.
d) I negotiate on price and incentives to get it filled right away.

 

[wlawr005]

d) I negotiate on price and incentives to get it filled right away.

So do most airlines and hookers.

 

[Igloojam]

I bought a house in Milton when I arrived for API, because we couldn't find anywhere else to live after Hurricane Dennis. Rented it out until I came back as an IP nd lived there again. Just left my IP tour and rented it out again. All my tenants have been flight students except one set...and that set was the only one I had problems with. I've heard nightmare tales from other guys renting to non-military locals. There is significant risk. Reasons I think it has worked out well for me:

1) Location, location, location. 15 min. from base and 35 minutes from Cordova Mall. Some studs show up for API and rent an apt in NE P-cola to be halfway between work and play, and then severely regret the 45 minute daily commute for the cookie-cutter apartment that doesn't really afford them great access to local hot spots. When they select helos, they move to a relatively nice, large house in Milton where they can cook out on weekends and make their briefs on time.

2) Tenants MUST be flight students (or IP's, but lots of them buy instead of rent.) Niche market. Choose location accordingly.

3) Couple of property factors:
a) all ceramic tile, except carpet in BR's.
b) slight upgrades to paint, doorknobs, lighting fixtures, etc. Just enough to make it feel a little less like a transient living hut than most rentals.
c) Big backyard with some nice parts and some wild parts, completely fenced in. Great for dogs (remember the tile floors) and/or kids.
d) I negotiate on price and incentives to get it filled right away.

You never had student pilots act like complete bachelors?

Also property management?

 

[Randy Daytona]

I will be renting my home in Tampa before heading off to TBS followed by flight school. With that said, I was thinking about buying another place in Pensacola as an investment (rent out to flight students after PCSing). I'm looking to buy under 130K$. My wife and I are pretty good at budgeting/planning but I was wondering if anyone has done something similar. If so, what are some tips I.e. "stay away from [this] area or don't waste your time..." and so on.

Without a doubt, get a cottage in East Hill. (Between 12th Ave and the water - the closer the water the better). This is the area between roughly Cordova Mall and Cervantes - close to Cactus Flower Cafe and Ozones Pizza. Love that area of Pensacola - only problem is the schools are not too good - but they are easy to rent.

OK - just saw the date of the post but still that is my favorite part of PCola.

 

[Igloojam]

Without a doubt, get a cottage in East Hill. (Between 12th Ave and the water - the closer the water the better). This is the area between roughly Cordova Mall and Cervantes - close to Cactus Flower Cafe and Ozones Pizza. Love that area of Pensacola - only problem is the schools are not too good - but they are easy to rent.

OK - just saw the date of the post but still that is my favorite part of PCola.

Do you have a rental property in this area?

 

[zippy]

Do you have a rental property in this area?

I've got buddies who do and they rent out well. The decent neighborhoods right down the road from whiting rent out well also.

My personal rule of thumb is to always use a property manager even when I live relatively close. Given the work/ deployment schedule its easier to pay the 10% to have a shit screen between you and the tenants.

 

[Igloojam]

I've got buddies who do and they rent out well. The decent neighborhoods right down the road from whiting rent out well also.

My personal rule of thumb is to always use a property manager even when I live relatively close. Given the work/ deployment schedule its easier to pay the 10% to have a shit screen between you and the tenants.

10% on rent costs correct? so if $1400 then 140?

 

[Pags]

10% on rent costs correct? so if $1400 then 140?

Yep.

I agree with Zippy; a property manager is worth the cost especially if you're not in town.

 

[zippy]

10% on rent costs correct? so if $1400 then 140?

Each property manager will have a different pay scheme (usually depending on what's acceptable practice in the local market they're in). The property I was referring to has a flat 10% management fee with $200 in reserve for management authorizable repairs (with greater than $200 requiring my or my POAs consent).

Other properties I have have additional fees that add up to about 15% annually, but that's the standard in the local market where they're located.

 

[Igloojam]

@zippy @Pags

Question.... Why do so many people tell ensigns to not buy when they are Pensacola?

I feel that with a 150k house, tax free BAH, not buying is silly... What are y'all's thought?

 

[zippy]

@zippy @Pags

Question.... Why do so many people tell ensigns to not buy when they are Pensacola?

I feel that with a 150k house, tax free BAH, not buying is silly... What are y'all's thought?

I didn't buy as a student because I had just bought another place in Northern Va at the time. I didn't buy as an IP in Pcola because the real estate market was still free falling when I was there.

A lot of people will argue for or against different types of investments (real estate, mutual funds, penny stocks etc.) based on their understanding of the subject in question. I'm very pro real estate purchases/ investing but I'm against real estate speculaton- so I really encourage guys and girls to do their homework about what they're thinking of buying, the market conditions, rental potential and mortgage rate terms.

Some people look at real estate purchases as investments, some look at it only as a home purchase and therefore don't believe people should do it if they know they're not going to spend a long time in an area. Some people believe in buying and renting and others believe they have to sell the house every time they leave.

I have a Buddy who literally has over $1million dollars in the bank and stock market but still spends $2500/ month on rent because he's afraid of buying real estate because he "doesn't understand it".

Basically it's different strokes for different folks. As a student everyone will give you their opinion whether you want it or not. Listen, nod your head and make your own decisions based on the total picture, and be prepared to accept the long term consequences. It's your money, spend it how you see fit.

 

[Igloojam]

I didn't buy as a student because I had just bought another place in Northern Va at the time. I didn't buy as an IP in Pcola because the real estate market was still free falling when I was there.

A lot of people will argue for or against different types of investments (real estate, mutual funds, penny stocks etc.) based on their understanding of the subject in question. I'm very pro real estate purchases/ investing but I'm against real estate speculaton- so I really encourage guys and girls to do their homework about what they're thinking of buying, the market conditions, rental potential and mortgage rate terms.

Some people look at real estate purchases as investments, some look at it only as a home purchase and therefore don't believe people should do it if they know they're not going to spend a long time in an area. Some people believe in buying and renting and others believe they have to sell the house every time they leave.

I have a Buddy who literally has over $1million dollars in the bank and stock market but still spends $2500/ month on rent because he's afraid of buying real estate because he "doesn't understand it".

Basically it's different strokes for different folks. As a student everyone will give you their opinion whether you want it or not. Listen, nod your head and make your own decisions based on the total picture, and be prepared to accept the long term consequences. It's your money, spend it how you see fit.

Totally agree with everything you said. I find the example about the guy who had a million in investments, and continued to rent because he knew nothing of the real estate, quite entertaining.

I guess I was wondering if there was an understood knowledge of a particular reason why Pensacola is a bad investment. I used to work at tyndall back in the day. Outside from the tourists, the locals appeared to be pretty gnarly.

thanks