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Considering a Gulf Coast condo purchase
Posted on 11/26/15 at 10:11 am
Posted on 11/26/15 at 10:11 am
So a property I own is about to sell and I'm wondering what to do with the proceeds. Family enjoys the beach and are enamored with the idea of a small condo around Orange Beach. We would have a small note and the plan would be to to use a reputable rental/property management agency. Any thoughts or suggestions would be appreciated.
4
Posted on 11/26/15 at 10:49 am to tigerjjs
At the end of the day, if you or family use it and enjoy it, buy it, but don't expect to make a significant amount of money on this venture.
If everyone gets along and shares it, it's a great multi-generational gift from you.
If squabbles breakout over decor, "my week", etc, it can be ugly and not worth the trouble.
Posted on 11/26/15 at 11:03 am to tigerjjs
Bad timing IMO. The time to buy along the coast was in 2009. There were condos that are now going for 450-600 thousand for 275-320 back in 2009.
Posted on 11/26/15 at 12:56 pm to Paul Allen
quote:
Bad timing IMO. The time to buy along the coast was in 2009. There were condos that are now going for 450-600 thousand for 275-320 back in 2009.
It's all relative
Posted on 11/26/15 at 1:08 pm to Paul Allen
quote:
The time to buy along the coast was in 2009.
It doesn't sound like that was the case for the OP.
Posted on 11/26/15 at 1:20 pm to Paul Allen
Quite the opposite in most spots. Just bought for 350k. Previous owner paid 500k in 2010
Posted on 11/26/15 at 2:36 pm to SomethingLikeA
Is that beachfront?
Posted on 11/26/15 at 4:47 pm to makersmark1
quote:This. A few years ago, I was thinking about doing the same and was taken aback by what my spreadsheet said. Income production is a myth.
At the end of the day, if you or family use it and enjoy it, buy it, but don't expect to make a significant amount of money on this venture.
Posted on 11/26/15 at 5:41 pm to tigerjjs
It could be a lot of fun, but they are hard to make cash flow unless you put a lot of cash into it. The association and management fees are very high.
This post was edited on 11/26/15 at 7:39 pm
Posted on 11/27/15 at 7:23 pm to tigeryat
I'm a real estate agent in Perdido Key and Pensacola Beach. You should really look over here as well. Our rental numbers are up and you'll have a tax friendly state to retire to :). Let me know I can send you some information from some over here
Posted on 11/27/15 at 9:03 pm to Paul Allen
They've had a lot of volitility since '07 but it's not like people have stopped going to Gulf Shores. There's always going to be a market for good properties down there.
Posted on 11/27/15 at 11:23 pm to GaryMyMan
There is a market, but the problem is HOA fees are what, a minimum of $600 a month? And then you have to pay a RE company to rent out your property?
Posted on 11/30/15 at 9:22 am to tigerjjs
A good friend of mine owns one at the Phoenix III I believe. He goes there probably 2 weekends a month from April - September, a week in the summer, and one weekend a month the rest of the year.
He has it pretty much rented out a good portion of the time from March - October that he's not personally using it, and most of the time from November - Feb it sits vacant.
I've talked to him about it before. Basically, on a good year, he breaks even - the amount of money he clears after paying the leasing/management company is enough to pay the expenses of the condo year-round. Some years, he has to throw a few thousand at it, but still far less than if he rented a condo all those times he personally uses it. Any major maintenance and upgrades come completely out of his pocket. But he's owned it for 7 years and after the initial spending to outfit it, there really hasn't been too many major issues.
He has it pretty much rented out a good portion of the time from March - October that he's not personally using it, and most of the time from November - Feb it sits vacant.
I've talked to him about it before. Basically, on a good year, he breaks even - the amount of money he clears after paying the leasing/management company is enough to pay the expenses of the condo year-round. Some years, he has to throw a few thousand at it, but still far less than if he rented a condo all those times he personally uses it. Any major maintenance and upgrades come completely out of his pocket. But he's owned it for 7 years and after the initial spending to outfit it, there really hasn't been too many major issues.
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