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Message
Good location for a vacation rental purchase as an investment?
Posted on 7/25/22 at 9:51 am
Posted on 7/25/22 at 9:51 am
My wife is deadset on purchasing a condo unit to rent to others throughout the year as an investment. Our income is good but in my opinion, not good enough to take on the additional risk of a $300k-$400k second mortgage given the fact that steady weekly occupancy isn't a guarantee.
We've looked at the beach areas of Alabama and some in Florida but Florida concerns me with the higher cost of property taxes. Also there's the fact that beach rentals are only going to be steadily popping for roughly 12 weeks out of the year. I know, I know - snowbirds could make up for the rest of the year but I don't want to have to count on that. That leaves the majority of the year on us to pay the monthly note out of pocket.
What other areas should we be looking at besides coastal areas? Preferably somewhere we could realistically count on steady rentals throughout the year. Am I out of line for thinking this is too risky for us or is this realistically doable? Our combined income is around $160,000 a year. That's not high enough in my opinion, even though we only really have a single car note and our primary mortgage to pay for.
We've looked at the beach areas of Alabama and some in Florida but Florida concerns me with the higher cost of property taxes. Also there's the fact that beach rentals are only going to be steadily popping for roughly 12 weeks out of the year. I know, I know - snowbirds could make up for the rest of the year but I don't want to have to count on that. That leaves the majority of the year on us to pay the monthly note out of pocket.
What other areas should we be looking at besides coastal areas? Preferably somewhere we could realistically count on steady rentals throughout the year. Am I out of line for thinking this is too risky for us or is this realistically doable? Our combined income is around $160,000 a year. That's not high enough in my opinion, even though we only really have a single car note and our primary mortgage to pay for.
13
Posted on 7/25/22 at 10:09 am to TDsngumbo
quote:
Our combined income is around $160,000 a year.
How much is your mortgage and car note? And you're going to have to have at least 20% to put down for an investment property unless you have a banker that can get it put through.
If you are dead set on it, I'd buy a townhouse in Beau pre and rent it to college kids over a condo somewhere out of town.
Posted on 7/25/22 at 10:34 am to Mingo Was His NameO
My mortgage and car note combined is 1870/month.
Posted on 7/25/22 at 10:36 am to Mingo Was His NameO
quote:
If you are dead set on it, I'd buy a townhouse in Beau pre and rent it to college kids over a condo somewhere out of town.
I suggested a small rent house somewhere nearby but she wants a place where we could vacation a week or two every year
. I'd be content earning an extra $500-700 a month in rental income after paying a small mortgage on a rental property and using that income towards a great week long vacation somewhere each year but, you know, logic is something my wife just doesn't recognize. 
Posted on 7/25/22 at 10:49 am to TDsngumbo
Trailer park in Alabama. Put in a crappy trailer and just collect rent.
Posted on 7/25/22 at 11:19 am to TDsngumbo
If you want a place to go on vacation and cover some of the costs by renting it out a beach condo is great. If you are truly wanting it as an investment then there are 1000’s of other ways to invest your money with way better returns especially in this crazy condo market.
This post was edited on 7/25/22 at 11:20 am
Posted on 7/25/22 at 11:22 am to TDsngumbo
Mountains with a ski resort. They rent just about year-round. Highest rates during ski season, but they rent well in the summer to people looking to beat the heat for a week or two.
ETA: However, the price of entry is very high.
ETA: However, the price of entry is very high.
This post was edited on 7/25/22 at 11:25 am
Posted on 7/25/22 at 12:21 pm to TDsngumbo
quote:
What other areas should we be looking at besides coastal areas?
Texas hill country, baw.
Reasonable access to Gruene, numerous lakes, numerous rivers to float or fish, San Antonio not far, Austin not far, San Marcos not far.
Someone else mentioned ski resort areas. They have more upside, but get ready to sell your first born to get in.
Posted on 7/25/22 at 12:27 pm to fjlee90
A lake cabin near a major college might be interesting. We rent a house occasionally on lake Hartwell near Clemson. Between fishing, summer activities and renting out for home games we figured the owner is making more than enough to pay for it based on what he paid for the place in 2017.
Don’t know if you could do that in 2022 though.
Don’t know if you could do that in 2022 though.
Posted on 7/25/22 at 12:35 pm to TDsngumbo
Y’all don’t make enough to play this game.
Posted on 7/25/22 at 12:46 pm to SloaneRanger
I agree ^^ but my wife seems to think we're the Rockefellers
Posted on 7/25/22 at 12:47 pm to TDsngumbo
Myrtle Beach, a block or two off beachfront.
Posted on 7/25/22 at 12:57 pm to cuyahoga tiger
Maybe Augusta GA. You’ll get half your year’s rent for Master’s. But what the hell are you going to do in Augusta the rest of the year?
Not even sure $400k can get a decent place on False River, Toledo Bene, or Pickwick.
Not even sure $400k can get a decent place on False River, Toledo Bene, or Pickwick.
This post was edited on 7/25/22 at 12:58 pm
Posted on 7/25/22 at 1:00 pm to TDsngumbo
(no message)
This post was edited on 10/26/22 at 9:26 am
Posted on 7/25/22 at 1:54 pm to goofball
quote:
Not even sure $400k can get a decent place on False River, Toledo Bene,
400k can get you a pretty sweet place on TB. Our camp is an 1800 sq ft brick house built in the 80s on 1.5 acres with 165 ft of water frontage. It was like 260 3 years ago. We don’t rent it out though, and I wouldn’t think it would be worth it if you were using it as an investment.
Posted on 7/25/22 at 1:56 pm to TDsngumbo
quote:
My wife is deadset on purchasing a condo unit to rent to others throughout the year as an investment.
No shite I got a newsletter from and AirBnb investment group that said Slidell and surrounding area was on the best investments for AirBnb's the last year
Posted on 7/25/22 at 2:02 pm to TDsngumbo
quote:
My wife is deadset on purchasing a condo unit to rent to others throughout the year as an investment.
Does your wife has a history of making wise financial decisions?
Posted on 7/25/22 at 2:26 pm to TDsngumbo
Tell your wife to put together a proforma that estimates annual income and expenses then calculates the IRR. If she doesn't know what you are talking about tell her that is why we aren't buying one.
Posted on 7/25/22 at 4:50 pm to tigeralum06
quote:
Tell your wife to put together a proforma that estimates annual income and expenses then calculates the IRR. If she doesn't know what you are talking about tell her that is why we aren't buying one.
I've tried telling her over and over again that the numbers just aren't in our favor and it would put us one moderate emergency away from turning into a one-way ticket to bankruptcy but she just has dollar signs on her mind. She hates that I invest our money for the long term because she doesn't see immediate return on it
. fricking women. She'll come around eventually. Posted on 7/25/22 at 4:52 pm to I Love Bama
quote:
Does your wife has a history of making wise financial decisions?
She actually doesn't make any of the financial decisions for us, that's all up to me. Which is why there's no getting through to her on this, she just won't believe me and the more she mentions it, the more I think about it, which leads to me second-guessing myself but it looks like I'm right in that this would not be a smart financial decision given our financial situation.
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