Destin Condo Math

Rental service 28 percent. Asso fees depend on the condo and number of bedrooms but figure around 600 per month. Insurance really isn’t to bad since much of it’s covered by the association but say 200 per month. You also need to allow for condo maintenance and repairs. Ours averaged about $1500 annually. Also if you’re using it in the summer it cuts into those rentals. And don’t forget several thousand in property taxes!

Very interested in this thread

I've never looked into this TOO deeply but sometimes I think people get into this just to be able to say "we have a condo in Destin"

It’s all about timing and getting in at the right price.


I don’t think now is the right time

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This is one of the things Ive always wanted to do. I look twice a year and I can't make the numbers work. All the best case scenarios have me making a little bit and having a place to stay.

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That's where I always end up and, that's using numbers where everything goes as planned, which never happens.

I've been looking at condos in PCB and have gotten several rental projections.

The units i'm looking at range in price from from $350k to 400k.

Rental projections are 30-35k per year

HOAs $700/month

Management fees 20%

Since I can't sleep, I'll tell you some more things.

What gets people generally is the maintenance and upkeep. It's not a primary residence so someone else is doing a lot of the work, sometimes almost all of it. Including things like installing a new fridge. $50-100 super easy job. Hanging a picture, etc.

Put in ALL LED's. The initial cost will easily be made up in maintenance fees from paying someone else to change a bulb for you and your electric.

But also, in short term rentals you have to replace things before they break. Beachfront AC outside system may only last 7 years. If you have an AC go out in peak summer and have to replace it, that's going to cost you big time. Furniture, appliances, etc. same thing. But I will say big things are done in bulk, like HVAC. We replaced a 5 ton HVAC system for $3900 total because the company did 35 units. That's a hell of a deal really, I see guys on here showing quotes for $8000+ for a 5 ton.

It's not major monetary expense, but I hear maintenance as one of the top complaints. But then guys don't want to come down to their vacation home and work. So you have to pay someone else. Seems obvious, but again I see it as one of the top complaints from men. It's not a major expense, but a couple $1000 a year depending on the size of the place obviously.

Basically, be prepared to pay someone else and monetize the cost to do almost everything you do around your own home.

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baldona

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I have another scenario for you. My wife and I are thinking of purchasing a place cash in a high rise or complex where there is the HOA and all of the maintenance is through the company who rents and manages the property. Major expenses are covered by the unit owner.

We are considering paying cash for the unit. The extra income is not what we are after. Long term we would move into this unit as our retirement place.

Good idea or terrible idea?

Nothing wrong with it at all. The biggest thing you need to do, and this is all public record and most are pretty open about it, is talk to the property manager and get the repair schedules. There's a name for it but I can't think of it right now.

Most larger condo complex's have a 3rd party auditor type of company prepare a schedule to repair/ replace things. Such as the roof, elevators, pool, etc.

The HOA/ COA SHOULD be saving/ escrowing for those. Look into that deeply. You just want to get into something that's responsibly run.

Also, be mindful of the COA. Maybe try to attend a meeting if possible before purchase. If the meeting is a bunch of idiots yelling at each other with a cop there to keep order, you may want to avoid... COA's are generally easier than an HOA because there is no yards or outside personal space. But the idea is the same so keep that in mind, you have to be able to live within close quarters of other people without wanting to murder them.

The only other thing to keep in mind is like I said that condos replace things on a generally set basis to keep them running properly and looking appropriate. With a home you may hold off on replacing that 15 year roof until you get your first leak at 18 years. A condo will replace that 15 year roof at 15 years.