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tigersfan1989
LSU Fan
Louisiana
Member since Oct 2018
333 posts

Beach condo purchasing
Need some feedback on purchasing, owning, and renting out a beach condo at orange beach or somewhere in Florida. I have always liked to invest in the stock market, but at times I don't feel like my wife gets the same satisfaction at seeing our investment account increase rather than something we can enjoy and use as an investment such as a beach condo. I realize returns may not be as profitable as other investing options but getting a beach condo for the long-term should be a good investment while also getting to enjoy that investment by staying there during unbooked times. So what all should one be looking at when purchasing a condo? There are so many things to take into consideration as far as price, locations (i want beachfront), size of total condo (12 floors vs a small 5 floor facility), using a property managment company to handling bookings, HOA fees and much much more. I guess you need to run cash flow on each listing to know the exact cash flow but these numbers can be different depending on the unit. Anyone have experience in purchasing/analyzing a beach condo for an investment? Anyone know terms being offered on beach condo financing? Requirements for downpayment and what kind of terms ie 15 or 30 year loans? Straight amortization or are they requiring a balloon? Rental purposes.
This post was edited on 5/22 at 4:34 pm


SalE
LSU Fan
At the beach
Member since Jan 2020
239 posts
 Online 

re: Beach condo purchasing
Barr Mortgage in GS..I feel the Lighthouse 1/2 to be the best investment in terms of ROI...I use Meyer for rentals.


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20
Popths
LSU Fan
Baton Rouge
Member since Aug 2016
2330 posts

re: Beach condo purchasing
I kicked it around for years. Never leaped. Didn’t like the idea of big fat nastys on my furniture. I’m a bit older. Starting to want less keys on my key chain. Love that beach. Maybe I’ll be your renter one day. Good luck making the right decision.


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150
BowDownToLSU
LSU Fan
Livingston louisiana
Member since Feb 2010
13356 posts

re: Beach condo purchasing
I’m thinking the way the world has changed since the pandemic it may be risky. The insurance might really cut into the profits


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greygoose
Auburn Fan
Member since Aug 2013
2735 posts

re: Beach condo purchasing
Property taxes in FL are a killer.


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jmarto1
LSU Fan
Houma, LA/ Las Vegas, NV
Member since Mar 2008
25583 posts

re: Beach condo purchasing
Baldona knows a lot. I have had one for a few years that I will probably sell within the next few days


AndyJ
Member since Jul 2008
1833 posts

re: Beach condo purchasing
Can I ask why?

Is it because you think prices are inflated and it’s a good time? I’d truly appreciate if you could give specific numbers...

(I’m thinking of buying one too).


tigersfan1989
LSU Fan
Louisiana
Member since Oct 2018
333 posts

re: Beach condo purchasing
Do you rent it yourself or have a property management company?


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jmarto1
LSU Fan
Houma, LA/ Las Vegas, NV
Member since Mar 2008
25583 posts

re: Beach condo purchasing
quote:

Can I ask why?

Is it because you think prices are inflated and it’s a good time? I’d truly appreciate if you could give specific numbers...

(I’m thinking of buying one too).



I only have a one bedroom and I believe it to have topped out in value. I do foresee a real estate crash with all the forbearance going on. That would be a better time to buy imo.

quote:

Do you rent it yourself or have a property management company?


Young's Sun Coast is my management company


go ta hell ole miss
New York Yankees Fan
Member since Jan 2007
8124 posts

re: Beach condo purchasing
quote:

I only have a one bedroom and I believe it to have topped out in value. I do foresee a real estate crash with all the forbearance going on. That would be a better time to buy imo.


The number of condos going on the market seems to go up everyday. It seems to be significant and over all markets (300k-seven figure). It’s been a drastic uptick in just the last two weeks.

Prices are still high, but the market is getting a lot of new listings daily. Last weekend there were 10 new listings in the Destin area market over the entire weekend. This morning there are already 13 new listings, likely more today and probably will be that many tomorrow, too.
This post was edited on 5/23 at 10:00 am


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Tigerpaw123
USA Fan
Louisiana
Member since Mar 2007
14350 posts

re: Beach condo purchasing
My advice would be not to mix recreation and investment.... if you want to invest money there are a lot better options... if you want a beach condo and can afford it. Get it, but don’t plan on That being an investment, oif when it is said and done you make a few dollars great, but don’t go into it thinking of it as an investment or relying on that and be able to float the expenses without the rental income
This post was edited on 5/23 at 11:36 am


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80
SalE
LSU Fan
At the beach
Member since Jan 2020
239 posts
 Online 

re: Beach condo purchasing
Are you selling?


jmarto1
LSU Fan
Houma, LA/ Las Vegas, NV
Member since Mar 2008
25583 posts

re: Beach condo purchasing
Yes, accepting an offer today


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10
24nights
LSU Fan
Louisiana
Member since Apr 2012
2551 posts

re: Beach condo purchasing
My wife and I were just talking about this


Magiklaw
Member since Apr 2020
12 posts

re: Beach condo purchasing
I am interested in this too and would love any input anyone can give. Been looking at 3 bedrooms in Orange Beach for a while. I have large family so I definitely need a 3 bedroom. I am thinking about renting just when we won't be using it to defray some of the cost.

I feel like it is too late this season to buy now. I am thinking prices may drop some due to the pandemic. Do the prices generally drop after the summer since the most valuable rental time has passed?


jmarto1
LSU Fan
Houma, LA/ Las Vegas, NV
Member since Mar 2008
25583 posts

re: Beach condo purchasing
Spring is usually the buying season


SalE
LSU Fan
At the beach
Member since Jan 2020
239 posts
 Online 

re: Beach condo purchasing
Fall is buying season down here as well...getting the summer revenue.


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SalE
LSU Fan
At the beach
Member since Jan 2020
239 posts
 Online 

re: Beach condo purchasing
A 3/3 in the Lighthouse if you don't mind GS.


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Ramblin Wreck
Georgia Tech Fan
Member since Aug 2011
2433 posts

re: Beach condo purchasing
There have been lots of threads on this topic, so if you don’t get enough replies, I’d search the old ones.

With that said, I own two of them in Orange Beach. Here is a bit of my knowledge -

Rental rate of return is less than other types of investment properties, but you should realize pretty good appreciation.

You will need to put about 50% down if you don’t want to supplement the monthly payments

One bedrooms have the highest rate of return. They rent more year round.

Study the HOA and talk to other owners. A poorly run HOA will be troublesome. Low HOA fees and lack of assessments is not necessarily a good thing. Salt water, sand and wind are killers. Infrastructure repairs need to be planned and done religiously. My buildings have a 25 year schedule that includes minor and major upgrades / replacements.


soccerfüt
Location: A Series of Tubes
Member since May 2013
41694 posts
 Online 

re: Beach condo purchasing
quote:

Salt water, sand and wind are killers. Infrastructure repairs need to be planned and done religiously. My buildings have a 25 year schedule that includes minor and major upgrades / replacements.
I’ve got an interest in a single-family structure (~3k sq ft, a 4 BR 3 BA) right off the beach in Escambia County over the past two decades plus.

Not to be Johnny Killjoy but one cannot underestimate the harshness of the environment there.

Remember that anything and everything exposed to the ambient environment will rot/rust/break/fail/discolor etc. much faster there than it would in a normal suburban setting.


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