Pensacola Flip with Good Margins

Built in 1956, this 2-story brick home sits on an 11,587 sq. ft. lot (0.27 acres) in West Pensacola’s Myrtle Grove corridor, approximately 3 miles from the back gate of NAS Pensacola. County records show 2,362 sq. ft. gross area; seller quotes 1,940 sq. ft. heated. Currently configured as 2 bed / 2 bath with a 2-car garage and central H/A. The layout supports a conversion to 3/2 or 4/2, which is the primary value-add play and the difference between a $265K and a $315K exit. The home needs a full renovation throughout: kitchen, baths, flooring, all major systems.

🟢 House Assets

• Brick construction: Solid 1956 brick exterior.
• 2-car garage: Attached 2-car garage is a meaningful differentiator at this price point – most 32506 comps in the $270K to $325K range include garages, and this one does too.
• Large lot (11,587 SF / 0.27 acres): Above average for the W Jackson St corridor.
• NAS Pensacola proximity: Approximately 3 miles to the NAS back gate, 4 miles to Corry Station. Strong, consistent military rental demand year-round – one of the most reliable tenant pools in the Florida Panhandle.
• Conversion upside: Layout supports 3/2 or 4/2 reconfiguration without structural additions. The bed-count upgrade is the single highest-leverage move in this deal – it shifts the exit into the $295K to $315K renovated comp range.
• Flood Zone X (likely): Most of this corridor carries minimal flood risk. Confirm this parcel specifically at FEMA MSC or escpa.org before closing.
• No HOA: Unincorporated Escambia County — no restrictions on renovation scope, rental structure, or timeline.

🛠️ Repairs Needed (Estimated)

• Roof: Age unknown, replacement recommended. Full shingle replacement on 2,362 SF gross footprint.
• HVAC: Age and condition unknown — assume end-of-life. Full system replacement.
• Electrical: 1956 original, likely 100 amp panel. Budget for 200 amp upgrade and selective rewire.
• Plumbing: 1956 — high probability of galvanized or cast iron. Budget for selective repipe and fixture replacement.
• Kitchen & Baths: Full gut on both baths and kitchen — cabinets, counters, fixtures, appliances.
• Flooring: LVP throughout heated living area (~1,940 SF).
• Interior Paint & Trim: Full interior repaint, ceilings, trim, doors.
• Windows: 1956 single-pane likely — budget for selective or full replacement.
• Bedroom Conversion (3/2 or 4/2): Non-structural wall work, closet build-out, permits.
• Landscaping & Exterior Cleanup

🟣 Comparable Sales

1. 821 Merlin Ter – 3/2 | 1,830 SF | Sold $325,000 ($178/SF) on 01/30/2025 | 1993 Built | Condition: Fully Renovated (Fully updated all-brick ranch with 2-car garage, new LVP, marble counters, fresh paint throughout — primary renovated ceiling for 3/2 brick with garage in 32506)
2. 342 Petherton Pl – 3/2 | 1,765 SF | Sold $269,000 ($152/SF) on 12/09/2024 | 32506 | Condition: Updated (Not a full renovation — establishes mid-tier ceiling for 3/2 product that is not fully turnkey)
3. 1924 Gulf Bay Ln – 3/2 | 1,720 SF | Sold $267,500 ($156/SF) on 03/26/2025 | 1997 Built | Condition: Standard (62 DOM, sold 4% below list — confirms $260K to $275K range for non-premium 3/2 product in 32506)
4. 724 N 46th Ave – 4/2 | 2,040 SF | Active/Contract $248,000 ($122/SF) on 02/18/2026 | 1959 Built | Condition: As-Is (0.44 mi NE; foreclosure judgment, sold as-is; best size-matched distressed comp — establishes the unrenovated ceiling for larger vintage brick product in this corridor)
5. 5500 Lynwood Rd – —/2 | 1,845 SF | Sold $215,000 ($117/SF) on 02/09/2026 | 1952 Built | Condition: As-Is (0.24 mi W; wood/siding, slab foundation — inferior construction type to subject’s brick; establishes the distressed floor)
6. 9 Janet St – —/1 | 1,725 SF | Sold $210,000 ($122/SF) on 02/20/2026 | 1955 Built | Condition: As-Is (0.37 mi W; block construction with finished basement, carport — as-is distressed baseline for vintage 32506 product)

💰 ARV & Rental Analysis

The fully renovated benchmark is 821 Merlin Ter at $325,000 – a 3/2 all-brick ranch with 2-car garage that sold in January 2025 after a complete renovation. The subject is slightly larger in gross SF but a 1956 build, warranting a $15,000 to $20,000 downward adjustment from that ceiling. If the conversion is not done and the property stays as a renovated 2/2, the ceiling drops to $245,000 to $265,000 – the bed count gap is real and costs roughly $40,000 to $50,000 at exit. The three as-is comps (Comps 4 to 6 at $117 to $122/SF) validate the $149,000 ask as appropriate investor pricing with meaningful spread to both scenarios.

Estimated ARV (2/2 renovated): $245,000 to $265,000 +/- Estimated ARV

(3/2 conversion, fully renovated): $295,000 to $315,000 +/-

Projected Rent: $1,850 to $2,100/mo +/-