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re: What are the ins/outs of buying a beach condo as an investment?
Posted on 7/27/14 at 9:05 am to I Love Bama
Posted on 7/27/14 at 9:05 am to I Love Bama
I really think I might look at something in the FQ. Louisiana is a popular state and the FQ will always have periods like Mardi Gras where you can make a good bit of money.
2
Posted on 7/27/14 at 10:17 am to jmarto1
I own on the Atlantic side of Florida. The real money, if there is to be any, is on the exit from the property. It isn't as easy as some think and the key is to have the capacity to stay during tough times.
Posted on 7/27/14 at 10:18 am to jmarto1
I'm guessing you need a minimum of 20% down, but what's the current rate on a NOO Investment/2nd property mortgage for prime credicks and 80% LTV?
I ran some numbers based on the three year occupancy averages for the Gulf Shores/OB/Perdido area broken down by quarter. Year round it's just under 50%. Pricing extremely conservatively on rent and estimating extremely aggressively for HOA/Insurance, if your rate is around 7%, you won't come out of pocket for the note, and you'll end up with a nice chunk of change to put back on principal each year.
In peak season, you still have the better part of a month's worth of time based on occupancy averages and that's thousands saved on vacation rentals is normally be out of pocket on.
I love Bama...I've been kicking this idea around, so I'm interested in how your math matches up. Care to share?
I ran some numbers based on the three year occupancy averages for the Gulf Shores/OB/Perdido area broken down by quarter. Year round it's just under 50%. Pricing extremely conservatively on rent and estimating extremely aggressively for HOA/Insurance, if your rate is around 7%, you won't come out of pocket for the note, and you'll end up with a nice chunk of change to put back on principal each year.
In peak season, you still have the better part of a month's worth of time based on occupancy averages and that's thousands saved on vacation rentals is normally be out of pocket on.
I love Bama...I've been kicking this idea around, so I'm interested in how your math matches up. Care to share?
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