re: Beachfront house: Good investment

You’ve got 3 months out of the year to earn that 18k per week. The rate will drop off outside of the summer months.

Property management companies charge between 10-20% and your sales tax is 7%. Roughly 50k in direct costs right off the bat.

Then you’ve got the weekly cleanings that will likely run you 1-2k per month depending on how often you have them done. Don’t forget lawn care and pool maintenance. Also, Not everyone will rent the full week.

I have 2k sqft house I bought in 2017. Properly taxes run me about 5500 and insurance is another ~10-12k. No HOA but you will. Call that another 5-10k. Newer neighborhoods have higher HOAs especially if they are gated.

You’ll also need to build or have enough cash on hand for emergencies. Renters won’t care for the home the same way you will so you’ll be out for any plumbing/damage/ac issues. Pool parts are expensive and all the companies tell you to replace the big things instead of fixing small things.

I’m not telling you to not do this. I’m just trying to shed light on the reality of the investment side of things. I see several November -Feb rental statements of 0.00 and march and October can be lean as well.

Oh if you do manage to turn a profit, Uncle Sam will also have his hand out for his cut.

people are saying you can't cover your expenses if you use it for personal use but also saying it would be 68-70% occupancy rate. So wouldn't you be able to use it a portion of the 30% it goes unoccupied???

I believe you get 14 days of the year to use it for yourself, otherwise it’s not considered available for rent for the full year and may limit or reduce your rental deductions on your Sch E.

Most people want to go to the beach in the summer. If you use the property during peak hours, you miss out on your highest rental revenue.

thanks for the reply. I am currently contemplating purchasing a place near 30a. Trying to learn as much as possible. The hope would be to STR and cover most expenses with the understanding I would be coming out of pocket on maintenance costs. I believe property values there are still sky high but think there may be opportunities later this year or sometime in 2026. I think I read recently that the destin/30a area has 30 months of supply on the market...

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destin/30a area has 30 months of supply on the marke

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Wow.

6.5 to 7% mortgage rates are the historical norm...people need to realize this.

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We would rent it out to produce income

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I’m not a smart man.

If it sounds easy, it’s usually hard.
If it sounds hard, it’s often damn near impossible.

Fact.

Pensacola