We are a military family moving to Pensacola, FL in October We know we will only be therethree years so

Asked by Heidi, San Diego, CA Mon Jun 30, 2008

are thinking it will be best to rent. He will very well be workiig in Milton. We want an area that is close enough to work, but close enough to civilization. For example, I want to be close to a gym, shopping, and restaurants while living in a newer, family-friendly area (have a 10 month old). Any suggestions?

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23
Drew, Home Seller, Pensacola, FL
Wed Jul 9, 2008
I'm selling my home in Pensacola right now and when talking to my agent about things military buyers came up. They told me that right now military personel moving to this area are being advised not to buy but to rent. My agent had an individual come to him who bought a house just about 2 yrs ago for $235K and now has been scheduled to relocate. He wanted to list his house at $240K but the comps in the area were for $190K.

FYI.. the last 2 homes that sold in my nieghborhood were on the market for 6 months for the one and 12 months for the other one.
1 vote
John the Bru…, Home Buyer, Connecticut
Tue Jul 1, 2008
Robin,

As I’ve said before, I didn’t know that I need to be in your state to understand the basics of finance and economics. My bad, yet again. It would appear as if your market, like all the other markets Realtors® cheer about, is immune to the effects of the national downturn.

I should have known. It’s different here™.

Really quick, Robin. Your $1500 rental costs, if applied to just P&I and ignoring upkeep, insurance, repairs and replacements puts you in a $312,734.28 house with a $250,187.42 mortgage, assuming 20 percent down and 30 years at 6 percent.

Let get crazy. Let’s assume you sell in three years for the same price you bought it for. I know, I’m on the fringe of a true bizarro universe. That will net you $293,970.22 after you pay your 6 percent commission. Hey, don’t be cross. Realtors® need to eat too!

Pay off the mortgage note – surprise – in three years you paid around 10K in principle! Yay! Forced savings plans work!

But wait! All said and done your equity has shrunk from $62,546.86 to $53,579.96; leaving you with an $8,966.90 loss to show for your three years of ownership. I guess that’s why becoming an accidental landlord is now the preferred exit strategy for all the sharp real estate “investors” out there.

Maybe you’ll come out ahead when you factor in the tax benefits of being an “owner.” Good luck.

Or, the more likely scenario involves the Florida market going down 15 percent per year for the next three years. Then you will have the distinct pleasure of showing up to your closing with a check to cover the $27K mortgage payoff shortfall.

Leveraging a depreciating asset in a slowing economy marketed by rising unemployment, continued credit tightening and real estate supply increases – in Florida no less – is about as smart as getting involved in a southeast Asian ground war.

Plan accordingly, friends.
-John
1 vote
NonRealtor, , 23456
Mon Jun 30, 2008
Heidi,
Renting is the way to go in a market like FL. If you click "Find Homes" then click Pensacola foreclosures, well, there's a lot of them. Wait another year, save another 20%. Today's investor is tomorrow's underwater seller. Good luck
1 vote
John the Bru…, Home Buyer, Connecticut
Mon Jun 30, 2008
The tax benefits you receive will not even come close to compensating you for the equity losses you will suffer from buying in this market.

In a normal market, you'll need 5 years or more to make buying better than renting. You'll need that long to amortize all the costs associated with buying and selling - the largest of which will be the Realtor’s ® commission. Any honest Realtor® here will tell you that.

But, taken with the common knowledge that supply in Florida is *increasing* and prices are *decreasing* you’ll need a lot more than 5 years to make it work and not loose your shirt in the process.

Just ask anyone who bought in Florida between 2004 and 2007.

I’d wish you luck in finding a Florida rental, but you won’t need it as the market is flooded with accidental landlords trying to ride the storm out.
1 vote
Blondie, Home Owner, Milton, FL
Sat Feb 5, 2011
I have a home in Milton Florida that is for rent . Three year rental would be fine since we are not sure if we will sell the house or just keep it for rental property. The house is a contemporary all brick 1700 sq ft. 3 bedrooms master has a tub with jets, living room has a fire place., separate eat in kitchen All appliances including washer and dryer. We are close to 1-10 and it does not take long to get into Pensacola and you are close to shopping in Pace and Milton. There are a few gyms in the area and plenty of shopping and restaurants in the area. The hous was built in 2002 and totally remodeled in 2005 after Ivan. The area is very nice and safe for a child. If you are interested and need more information my email is blondieone@yahoo.com. I will be able to send pictures of the house to . We do not want pets and no smokers please. The rent will be $900 to 950 month with a security depost of one month rent and you would be responsible for your own utilities and cable. Hope to hear from you.
0 votes
Fred Boyer, Agent, Niceville, FL
Tue Aug 31, 2010
Heidi,
My Navy son Ben, works at Whiting Fld. He had same concerns, so bought near Scenic Hwy and I 10. Says "This works for us".

Cheers, Fred REALTOR C-21 WMA http://www.emeraldcoasthousehunter.com
0 votes
Burrkey1972, Home Seller, Birmingham, AL
Fri Sep 11, 2009
I have a fully furnished, three level townhouse on Navarre Beach, Fl.

The town house is the first one you come from the east on gulf blvd. Number 7608H, Gulf Blvd. Navarre Beach, Fl. 32566.

There are four townhouses in the buiding, and it is an outside unit, not an interior, which has a wrap around deck from the front facing the gulf , off the main living room, to the back area off the kitchen facing the sound.

The den has sliding glass doors opening up to the front deck, and the kitchen has them as well opening up to .the sound side deck and stairs that go down to the ground level.

The master bedroom is on the up stairs third level, and the furnishings include a queen size bed, with a television inside the armoire. The bedroom also has sliding glass doors, opening onto a deck facing the gulf , offering views of the Gulf of Mexico. There is a guest room, down the hall from the master bedroom facing the sound side, with two sets of bunk beds, that will accommodate four people. There is a laundry room in the hall between the master bedroom, and the guest bedroom, that has a washer, and a dryer. There is a bathroom off the master bedroom, which is also accessible from a hall door, that serves both the master and the guest bed rooms.

The main level has a fully equipped kitchen, as well as a dining area, and livingroom, with a queen sleeper sofa, and a large screen television, and faces the sliding glass doors facing the gulf side. There is a bathroom, with a bath tub/shower, on the main level as well.

Also on the ground level , off the garage, there is a furnished suite, with a door accessible from the garage, and a door that is on the opposite side opening on to the ground level facing the sound. The suite is complete with a bath room, and shower, and has a queen size bed and a trundle bed that has a single mattress on the top, and a single mattress on the pullout bottom.

Also on the ground level outside on the sound side, there is an outside privacy shower.

The entire townhouse was redecorated about two years ago, in an island look , that has a relaxing beach feel
to it.

The unit is pet freindly, and has a new central air conditioning , and heating unit, put in a few months ago.

The downstairs suite has a fairly new heating , and air conditoning unit as well.

My name is Trotter Cobb, my home phone number is 205-871-1960, my cell.# 205-492-2260, and my email address is- trottercobb@att.net.

This is a very nice unit, and I am willing to negotiate.

Please contact me at your earliest convienience.

Sincerely,


Trotter Cobb

On the back side of the unit, on tyhe ground level
with the living, dining, and kitche are
.sleeping four people and a guest room at the opposite side of the hall, facing the sound. it also has sliding glass doors opening yp to a deck that faces the sound side, with tremendous views of the sound
0 votes
Laura Perrym…, Agent, Pensacola, FL
Sat Nov 1, 2008
Heidi,
I just did a search on the MLS, there are 14 active rental listings with four bedrooms in the Northeast and 9 mile Rd area. They range from $875-$3000 per month rent. I can forward this information if you contact me with your email address.

As mentioned before, you can also perform your own search from my website listed below.

Other great resources are Craigs List and the American Classifieds:

http://pensacola.craigslist.org/apa/

http://www.americanclassifieds.com/search.cfm?catId=124&…

Best Wishes,
Laura Perryman
Broker/Owner
Real Estate Direct
superrealtor@hotmail.com
866/451-2384 Toll Free
Web Reference:  http://www.redpensacola.com
0 votes
Rafael Deliz, , Pensacola, FL
Sat Nov 1, 2008
Heidi

I understand exactly what your concerns are, being a Navy Chief and about to retire here in Pensacola having move more times than I care to mention gives me a unique understanding of your particular situation. I agree with my fellow Real Estate Professional previous comments, there is a real target of opportunity to land a great deal if you choose to buy a home during this period, we are starting to see a reduction in the inventory of homes for sale in the area, that is a strong indicator that we are leveling off which are great news for home owners. I own homes in Corpus Christi, TX and Puerto Rico respectively and have not had any trouble getting tenants due to its proximities to military installations and yes I have some nice equity build up in both homes. I could put them in the market at a very competitive price and still make a significant profit. Having said that and keeping your family's best interest at the fore front, it is my recommendation for you to get here and checkout the area and the market for yourself first, may be a six moth rental is not such a bad idea, this will give you the opportunity to choose a neighborhood that fits your particular needs and wants. These would be something similar to what my family and me did almost three years ago when I transferred to Pensacola and decided to make Pensacola our home. We decided to moved into Navy housing for about a year while deciding if we wanted to make another real estate investment and be sure that Pensacola was a place to raise my kids and retire. I found a great deal about a year ago and I could sale and make a little money I may add, needless to say I am very happy my situation so far, I have always enjoyed real estate and help others achieving their dreams of home ownership while making sure that they do not hurt themselves in the process and that is why I decided to choose real estate as my second career.

Take good care of yourself and your family and do not hesitate to call or email if I could be of assistance,

Rafael A Deliz, REALTOR
7203 Pine Forest Road
Pensacola, FL 32526
Cell 850-377-8623
rafael.deliz@cbunited.com
Web Reference:  http://www.cbunited.com
0 votes
James Cobb, Home Seller, Birmingham, AL
Tue Oct 28, 2008
I own a beautiful three level townhome in Navarre Beach, Fl. Milton is about a 20 minute drive straight up hwy. 87 from there.
Navarre Beach is right on the gulf of mexico, and my town home is right across gulf blvd. from the gulf, and behind it is the sound.
I have wrap a around deck off the main level, with views of both the gulf, and the sound.
It has a total of three bedrooms. The master up stairs has a queen bed, and bathhroom, and a deck of it with fabulous gulf views.
The other upstairs bedroom is at the opposite side of the hall, with a deck and views of the sound, fantastic to watch the sun set. It has two sets of bunk beds.
The main floor, has a queen sleeper in the den.
There is a private apartment off ther garage, with a queen bed, and a trundle day bed.
The private apartment has a bathroom, and shower.
The townhouse is completely furnished, has cable, heating, and a/c, and wireless internet.
Outdoor shower, and gas grill.
This is casual beach living at its best!
I will negotiate!!!!
Please let me know ASAP!
Thanks.
James Cobb- burrkey72@charter.net
0 votes
James Cobb, Home Seller, Birmingham, AL
Tue Oct 28, 2008
I own a beautiful three level townhome in Navarre Beach, Fl. Milton is about a 20 minute drive straight up hwy. 87 from there.
Navarre Beach is right on the gulf of mexico, and my town home is right across gulf blvd. from the gulf, and behind it is the sound.
I have wrap a around deck off the main level, with views of both the gulf, and the sound.
It has a total of three bedrooms. The master up stairs has a queen bed, and bathhroom, and a deck of it with fabulous gulf views.
The other upstairs bedroom is at the opposite side of the hall, with a deck and views of the sound, fantastic to watch the sun set. It has two sets of bunk beds.
The main floor, has a queen sleeper in the den.
There is a private apartment off ther garage, with a queen bed, and a trundle day bed.
The private apartment has a bathroom, and shower.
The townhouse is completely furnished, has cable, heating, and a/c, and wireless internet.
Outdoor shower, and gas grill.
This is casual beach living at its best!
I will negotiate!!!!
Please let me know ASAP!
Thanks.
James Cobb- burrkey72@charter.net
0 votes
Heidi, Home Buyer, San Diego, CA
Wed Sep 17, 2008
Thanks, Walter! House looks great and I appreciate you showing it to me. Ideally, we want 4 bedrooms, but could, maybe, make a 3 bedroom work. I will save this link and, perhaps, contact you upon arrival or the real estate agent listed. Feel free to give me your e-mail, as well.

I would appreciate it if anyone else would show me 4 bedroom rentals or tell me the best resource (aside from the obvious real estate agent), as well. We think we want to start off by looking in the Nine Mile Road/Northeast Area.

Thanks, in advance!
0 votes
Walter, Home Seller, Pace, FL
Tue Sep 16, 2008
Hi. I hope this helps us both. My family is looking to move from the area now and have our house up for both sale and rent. I have linked to a website I built (I am a web designer) for our house. The site only lists it for sale but we have recently contracted a rental agent as well. Our realtor can refer to him.

Our house is in a very friendly neighborhood, near all A/A+ schools and is central between Milton and Pensacola. Just a quick hop to University of West Florida - well look at the link. We are not in any mortgage trouble and can close quickly. The market sucks so I am ready to offer a home warranty and the house is priced for us to walk away with little to no money from the closing table. I hope it fits your needs. If not, then good luck in your search!
Web Reference:  http://www.houseinpace.com
0 votes
Preston Murp…, Agent, Pensacola, FL
Mon Jul 14, 2008
Hi Heidi!

I'm a Realtor working for Weeks Realty, Inc. in Pace, FL. We are a full service, independently owned and operated real estate firm in Northwest Florida. We deal with a lot of military individuals and families because of our close proximity to the military bases, specifically Whiting Field in Milton, FL. I would love to assist you upon your moving to our area.

Please feel free to contact me anytime.

Preston Murphy
Realtor
Weeks Realty, Inc.
Cell (850) 380-0571
Web Reference:  http://www.weeksrealty.net
0 votes
Myke Atwater, Agent, Santa Rosa Beach, FL
Mon Jun 30, 2008
Hello Heidi--I am a realtor on the Emerald Coast including Navarre, Destin, Crestview--not a bad drive from Milton. I would be happy to assist you in your search for a home in the area. Contrary to what you are reading here, our market is at about its low point, and properties are flying off the shelf if they are priced below 250,000. You can buy a nice home in Navarre or Crestview area for under 200,000. Prices should begin rebounding later this year positioning you to make a gain on your investment during the three years that you would be here. Let me know if I can help!!
Web Reference:  http://www.MykeTriebold.com
0 votes
Robin Sherman, Agent, Pensacola, FL
Mon Jun 30, 2008
Heidi - Conservative is good. As you mention, sometimes the stress of worrying about it can outweigh what looks like a cut and dry decision. If you feel there is a big risk you may be uncomfortable and who wants to lose sleep? Rent and sleep well!

That being said, I always look at the cost to rent - say $1500/mo for 12 months X 3 years = an investment (or a cost) of $54,000. No tax breaks and no ability to customize a home to your wants and needs.

Florida is a HUGE state and the Panhandle - decidedly - is not Miami. The Panhandle has not seen the huge price swings that Miami, Orlando and Tampa have seen. Our prices just did not run up as they did in other Florida markets dependent on tourism or a particular industry. The Panhandle economy has always been fueled by the military (NAS Pensacola, Hurlburt, AFB and Eglin, AFB), health care and retirees (primarily military).

With all due respect, I'm not sure that John in Conn. can give you a good read on buying real estate in Florida, or renting for that matter. All real estate really is local - our single family home market in Pensacola is considerably different than even the market on nearby Pensacola Beach. When you look at the numbers - you have to pull out properties like beach condos and waterfront homes as they aren't good comparisons - from the averages to make any sense of them.

And I don't really understand the comment about not following the herd. The herd right now is sitting the fence pretty much nationwide - other than the professional real estate investors who are doing what they do best; picking up the best deals while everyone else "waits for the bottom." Just like stock market timing, by the time you can see the bottom, it's usually above you!

Best of luck to you and your husband with your FL move and with the career. We found our time with the Navy to be very rewarding.
0 votes
Heidi, Home Buyer, San Diego, CA
Mon Jun 30, 2008
Thanks, everyone. John, so nice to hear someone echo my thoughts. My husband and I both feel we are very good with our money, albeit a little more safe/conservative compared to most. We were told by almost everyone to buy when we moved to San Diego 5 years ago and almost regretted not doing so. Boy am I glad we didn't. We don't have the option of waiting things out when we get orders and we would have lost our shirts or stressed out about finding renters while relocating to the other side of the country. Instead, we have a very nice savings to show for our time here. We had planned on buying in our next place, but know for certain that we will never get orders back to Florida. Like you said, being an absentee landlord is a little more stress then we like to add to our lives. While I realize we may miss out on making a good profit, it is a gamble. Sometimes I think that keeping your money safe and sound isn't so bad .... I am sure some people facing foreclosure would agree. Don't think that I don't often doubt myself, though. I am sure we will still kick around the idea, but think this may be the wisest for us. With my husband in Iraq right now and us having to move quickly up on his return, I don't want to act hastily in todays market. So nice to hear from others!
0 votes
John the Bru…, Home Buyer, Connecticut
Mon Jun 30, 2008
The herd, for the most part, is still buying, Marian. Sales are down, but not by the amount that we’ll see before this downturn is over. That being said, buying real estate today is hardly the contrarian play. When people laugh at you for buying RE, then it will be.

What do you tell your clients that are buying with a 3-5 year investment horizon? Yes, you can always rent it out, but being an absentee landlord is hardly a good exit strategy, especially in Florida where carrying costs are increasing rapidly.

BTW, Heidi – check out this link:

http://www.trulia.com/voices/Home_Buying/Is_now_a_good_time_…

And may God bless both of your families for the sacrifices they make so that we may enjoy freedom.

Thanks,
-John
0 votes
M, , Florida
Mon Jun 30, 2008
Heidi,
I love John's position. I am writing this more for all readers and not specifically to you Heidi. Take a look at who is buying in this market. The same people who bought in the last down cycle! Don't follow the herd...always do the opposite in real estate. I do agree that 5 years is better than 3 years in general, however for anyone who has been in the military, you can't be sure that you will be at a particular duty station for 3 years, 5 years or even longer. My husband ended up in or around San Diego for over 6 years. Also, I am not recommending that you sell after 3 years. If and when you transfer, rent it out if possible. You have access to a huge pool of possible renters coming and going.
Respectfully we don't completely agree with John. He makes some very good points, but this market is ripe for buyers in the right areas.
Marian Schaffer
The Schaffer Realty Group
http://www.marianschafferrealty.com
0 votes
M, , Florida
Mon Jun 30, 2008
Dear Heidi,
My husband retired from the Navy and he purchased property at almost every duty station he was at. He started off as an E1 and retired as an O5. The FL market is a great place to begin purchasing because of the market conditions. Over time you will be glad you did. You can reach my husband at terry@marianschaffer.com. If you need any assistance, please contact us. Also, thank you for your service!
Marian Schaffer
The Schaffer Realty Group
877-886-8388
marian@marianschaffer.com
http://www.marianschafferrealty.com
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Jun 30, 2008
Purchasing you receive tax benefits, you might be able locate foreclosure with equity you truly make some serious money with the right realtor. http://www.lynn911.com
0 votes
Laura Perrym…, Agent, Pensacola, FL
Mon Jun 30, 2008
Heidi,

The Milton/Pace area has all the amenities that you mentioned. For the larger Mall shopping you would need to come into Pensacola. Depending on where you settle, and the time of day, it is a 10-30 minute drive. If you would rather stay in Pensacola you will probably be better off in the 9 Mile Rd.,(University of West Florida), area or Northeast Pensacola. There is an ample suply of rental properties available in all of these areas. My website has an abundance of area information available and you may search the MLS for properties. Let me know if I may be of further assistance to you.
Web Reference:  http://redpensacola.com
0 votes
Robin Sherman, Agent, Pensacola, FL
Mon Jun 30, 2008
Hello Heidi - I can understand your interest in renting, however there has never been a better time to buy in the Pensacola Bay Area! The near term predictions are for a continued slow market (lots of housing inventory), but most of the experts predict that with the baby boomers entering their peak retirement years areas like Pensacola (Pace, Milton, Gulf Breeze, Navarre) will really benefit.

As a former Navy wife I can tell you that we purchased whenever we had an assignment that was more than temporary as the prospect of giving away rent money wasn't a pleasant one. There is always the tax benefit to home ownership.

All that said, when there is high housing inventory for sale there is also good inventory for rent. Pace is a rapidly growing area that is not far from Whiting Field and also close enough to Pensacola that you won't feel like you are "out in the stix." There is a new retail center with a Target, Starbucks, etc. Gulf Breeze is also another great choice if you would like to be closer to the beaches.

I'll be happy to answer any questions you might have. Feel free to visit my web site and check out my Testimonials page where you can read what a lot of military clients have had to say about working with me and my team. Best of luck to you on this upcoming adventure! There are lots of things to LOVE about Northwest Florida!
0 votes
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