re: Gulf Shores/Orange Beach condos

As late as 5 years ago you could still buy a GS/OB condo and not have to subsidize it too much. It is a completely different story today. I own a Phoenix V condo and here are my rentals and expenses -

Annual Expenses -
Electric - $1,800
HOA Base - $9,200
HOA Capital Assessment - $7,000
HOA Insurance Assessment - $14,000
Orange Beach Business License - $200
HO6 Liability Insurance - $1,500
Property Tax - $4,600
Rental Repairs - $3,000
Management Fee (20%) - $12,000

Total - $53,300

Rental Gross - $60,000
Net - $6,700

Loan Payments ($380,000 - 30 years) - $28,800

Net annual subsidy - $22,100

So I have to pay about $2,000 a month out of pocket. The good news is the condo that I paid $480K for about 5 years ago is worth about $800K today.