Own one in Sandestin. Thought I bought at the peak, but it's value is up 50% in the last two years. Everything in Sandestin is still selling the first 24-48 hours on the market.

That said- here's my financials on it in a nutshell.

Purchased at 525(my unit selling for 750-850 now)--put 120 down. 2.8% @ 30 years yields a 1800ish mortgage. Condo fees, HOA, taxes etc is another 1000/ month.

Costs me $3000/month to hold it
Rents really well in summer as expected. Rental co takes 25%. I net about $3000/month on average from them. Summer mighr be 7-8k/month, and may not get but 1000 or so in november or feb. Basically-it pays it's holding costs but no more. At the end of the day I'm getting an appreciating asset paid for and that doesn't suck, but it's not making me rich.

This post was edited on 6/30/22 at 9:52 am

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Posted by SippyCup

Gulf Coast

Member since Sep 2008

6163 posts

Posted on 7/3/22 at 10:30 pm to NorthEnd

quote:
At the end of the day I'm getting an appreciating asset paid for and that doesn't suck, but it's not making me rich.

This is 99.99% the case for almost all vacation rentals I’ve owned in NW Florida.

My family has been investing in NW FL since the late 80s. I jumped in after the crash in 07. At one point I owned 6 properties and none were significantly cash flow positive at the year end. The money was made buying low and selling high. My last property that sold at the end of 21 was purchased for 415 and sold 3 years later for 1.25. That same peppery sold again 3 months later for 1.5.

With that said, now is NOT the time to buy. I’m down to one rental and our vacation home which is never rented out.

This post was edited on 7/3/22 at 10:31 pm

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