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Message
re: Beachfront house: Good investment
Posted on 5/30/25 at 5:11 am to JoseVargasTX
Posted on 5/30/25 at 5:11 am to JoseVargasTX
quote:
If we can rent at 240-250 nights per year
What is the worse case scenario?
If you want a beach place, and you can afford it, I would not worry about renting it.
I explored the idea years ago, but ultimately felt like it was too far to go for a short weekend and would have tied up a great deal of capital.
1
Posted on 5/30/25 at 6:10 am to Chucktown_Badger
quote:This
You likely could not find a house with a higher cost of maintenance than one directly on the ocean/Gulf. Salt eats houses, so you're constantly replacing things.
I have 25 years experience watching the ambient conditions GoM/GoA beachfront attempt to break down a residence. The conditions are absolutely brutal and anything you try to do to prevent deterioration gets laughed at.
Good luck.
Posted on 5/30/25 at 8:24 am to N2cars
I bought one 10 yrs ago and property values have more than tripled so far.
Posted on 5/30/25 at 8:38 am to N2cars
My father's old friend made a fortune on beach front property. He'd buy land outside of the developed zone and hold it until the development moved past it and then sell or build.
Posted on 5/30/25 at 8:59 am to 2geaux
quote:
I bought one 10 yrs ago and property values have more than tripled so far.
Post real estate crash and low interest rate environment of the early 2010s may not ever be duplicated. Just all time great timing for a place on the gulf coast.
Posted on 5/30/25 at 9:00 am to Auburn1968
quote:
My father's old friend made a fortune on beach front property. He'd buy land outside of the developed zone and hold it until the development moved past it and then sell or build.
Well he must have been rich already because that land, even decades ago was incredibly expensive.
Posted on 5/30/25 at 9:46 am to makersmark1
Correct me if I’m wrong on this but deductions should include:
1. Management fee
2. Mortgage interest
3. Supplies for the property
4. Yard and cleaning fees
5. My work and travel to the property to do work
What am I missing and is the above correct?
1. Management fee
2. Mortgage interest
3. Supplies for the property
4. Yard and cleaning fees
5. My work and travel to the property to do work
What am I missing and is the above correct?
Posted on 5/30/25 at 9:58 am to N2cars
I own an inherited condo. Last year it made about 2% of the value of the property in profit after all costs with no mortgage.
Posted on 5/30/25 at 10:21 am to N2cars
Florida resident here. Insurance has become completely nightmarish in the last 5 or so years. Not only from a pricing standpoint. Availability is spotty particularly the closer to the coastline you get. Moreover; the insurers are finding more and more creative ways to deny coverage. The amount of unpaid claims for roof damage after Hurricane Milton and Helene is staggering.
Recently; some homeowners in my area have been getting policy cancellation notifications. Along with the notification, they are being sent satellite or aerial photographs of their property and the proximity of trees to the home is being used to deny coverage.
The only way I would purchase a coastal home is if I had enough cash reserves to self-insure and repair at my own expense if the unimaginable happens.
Recently; some homeowners in my area have been getting policy cancellation notifications. Along with the notification, they are being sent satellite or aerial photographs of their property and the proximity of trees to the home is being used to deny coverage.
The only way I would purchase a coastal home is if I had enough cash reserves to self-insure and repair at my own expense if the unimaginable happens.
Posted on 5/30/25 at 10:26 am to 2geaux
quote:
I bought one 10 yrs ago and property values have more than tripled so far.
Problem is they take forever to sell. You have to list 50k lower than everyone else just to get interest. Most potential buyers can't get financing. Cash buyers want you to give it away.
This post was edited on 5/30/25 at 10:35 am
Posted on 5/30/25 at 10:39 am to JoseVargasTX
quote:
What am I missing and is the above correct?
Wear and tear. Replace beds every couple years. Appliances every 5-7 years. A/C every 5-7 years. Tvs every 5 years. I average 7k in wear and tear costs per year.
Posted on 5/30/25 at 12:47 pm to Shaun176
quote:
own an inherited condo. Last year it made about 2% of the value of the property in profit after all costs with no mortgage.
This makes me want to just rent a few times a year. Haha
This post was edited on 5/30/25 at 5:14 pm
Posted on 5/30/25 at 6:04 pm to barry
quote:
quote:
My father's old friend made a fortune on beach front property. He'd buy land outside of the developed zone and hold it until the development moved past it and then sell or build.
Well he must have been rich already because that land, even decades ago was incredibly expensive.
This was almost 70 years ago. He had a nose for money and a good business sense.
Posted on 5/30/25 at 7:22 pm to JoseVargasTX
quote:
1. Management fee 2. Mortgage interest 3. Supplies for the property 4. Yard and cleaning fees 5. My work and travel to the property to do work
I’ve heard you should set aside 2% of property value per year for maintenance.
It won’t be that every year, but when a roof or major system needs repair you will have the cash on hand.
There is nothing wrong with having a beach house.
There is nothing wrong with renting a beach place.
I don’t think rentals are something I want to do at this point in my life, but I’m sure many people enjoy a nice profit on the right properties.
Posted on 5/31/25 at 7:56 am to GeauxTigers123
Market is absurdly overpriced for sale and rental markets. Crash will be epic and much worse than 2008.
Posted on 5/31/25 at 8:35 am to Billy Blanks
quote:
Okay
But it will not
quote:
produce income.
I mean if he takes in more than the cost of mortgage, insurance, maintenance, etc... it technically is producing income.
Now is it enough to be worth the hassle? That a whole different thing.
Posted on 5/31/25 at 5:35 pm to N2cars
quote:
Specifically, PCB/Destin area.
Is insurance available?
As a long term thing, if you comfortably have the money and its gonna be used by your family....sure
As an income property, no
Posted on 5/31/25 at 5:41 pm to N2cars
quote:
Some of these houses are generating 250-500K gross rev per yr.
bullshite. So if you have at 1k/day and 100% occupancy for an entire year, you only make $365k.
Sure are there some houses around the world that can pull in 20k weekends...sure but they arent in PCB or Destin. Cleaning/laundry for those nice beach houses is probably bare minimum $300
Posted on 6/2/25 at 1:01 pm to N2cars
Wait for another 2008, then scoop up a foreclosure.
Posted on 6/2/25 at 5:22 pm to The Mick
quote:
Wait for another 2008, then scoop up a foreclosure.
Maybe that happens. Maybe it doesn’t.
But the OT and this board have been promising me a housing crash for at least 8 years.
This post was edited on 6/2/25 at 5:23 pm
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