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Started By
Message
re: Gulf Shores/Orange Beach condos
Posted on 2/22/24 at 9:25 pm to Dawgfanman
Posted on 2/22/24 at 9:25 pm to Dawgfanman
I forget this is the most literal board.
Point remains it’s been a good investment while having a condo to go to anytime she likes.
Plus my MIL is well diversified and is doing extremely well in other investments.
I didn’t mean to start an argument.
Point remains it’s been a good investment while having a condo to go to anytime she likes.
Plus my MIL is well diversified and is doing extremely well in other investments.
I didn’t mean to start an argument.
1
Posted on 2/23/24 at 1:31 am to anc
Great stuff
Posted on 2/23/24 at 6:52 am to Dawgfanman
quote:
250k invested in “the market” with all dividends reinvested would be nearly 1.5 million today. This is based on average S&P returns since then.
lol, what? Show us the math here. $250k in 2009 is not worth 6x in 15 years.
Posted on 2/23/24 at 7:17 am to Jag_Warrior
quote:
20%?! That’s quite a healthy management fee. How is “general maintenance” being defined here?
I own both. 20% for a short is a great deal compared to 8-12% for long term.
My long term rentals I generally spend 10-20 hours a year per tenant. Posting it open on Zillow, collecting checks once a month, and stopping by every month or two when I’m in the area. Management companies don’t do shiiiiit for long terms. Long term rental contracts don’t consider the HVAC an issue unless it’s over 78*. 78*!!! lol, imagine that on the beach?
Tenant owns washer and dryer and all consumables inside
$0 in marketing fees or effort. Post on Zillow for free or cheap
My short term I have this work:
200 plus inquiries to talk to
30+ reservations to talk to at all hours of the day. lol, 9-5 only? GTFO
60 payments to take
30 arrivals and 30 checkouts to answer to
30 housekeeping cleans to schedule and make sure all is good after completed. 30 housekeeping payments to make.
All items in the condo I own. All appliances I own and have to be working perfectly. All consumables like sheets, towels, forks, etc. we own and clean
Issues are 24/7 to handle
Marketing fees are $1000-2000/ year
I’ve spent more time in a week in my short term doing work then I have all year in my long term
This post was edited on 2/23/24 at 7:19 am
Posted on 2/23/24 at 7:27 am to baldona
The S&P500 in 2009 was at 700. Todays its a 5K
Granted your stock portfolio stock doesnt give you a vacation spot to make family memories
Granted your stock portfolio stock doesnt give you a vacation spot to make family memories
This post was edited on 2/23/24 at 7:28 am
Posted on 2/23/24 at 8:37 am to Man4others
quote:
The S&P500 in 2009 was at 700. Todays its a 5K
Granted your stock portfolio stock doesnt give you a vacation spot to make family memories
You also aren't counting dividends, while not huge in an SP500 fund they still compound to make a difference.
Posted on 2/23/24 at 8:42 am to NorthEnd
quote:
Condo fees roughly 12k/year
rental company takes 20%
Ouch, that is brutal.
Posted on 2/23/24 at 10:03 am to baldona
SPY (The Spyder S&P 500 trust) was $77.42 on February 23, 2009.
Its $508.53 at this very moment
$250k in 2009 would have bought 3229 shares.
3229 shares right now is worth $1.64 million.
It also has paid out $64.70 per share in dividends. That's another ~$208k.
He was actually short $350k on his estimate. The post 2008 stock market has been the greatest wealth building moment in history for those who have taken advantage. My family tree is forever changed.
Its $508.53 at this very moment
$250k in 2009 would have bought 3229 shares.
3229 shares right now is worth $1.64 million.
It also has paid out $64.70 per share in dividends. That's another ~$208k.
He was actually short $350k on his estimate. The post 2008 stock market has been the greatest wealth building moment in history for those who have taken advantage. My family tree is forever changed.
This post was edited on 2/23/24 at 10:10 am
Posted on 2/23/24 at 10:58 am to baldona
quote:
lol, what? Show us the math here. $250k in 2009 is not worth 6x in 15 years
You are simply wrong.
Posted on 2/23/24 at 11:15 am to anc
quote:
My family tree is forever changed.
You must have had some spare cash sitting around back in 09.
Back on the original topic, what do you look for in rentals. I have some cash to buy one, but I can’t find anything around me that would rent monthly for 1% of the purchase price.
This post was edited on 2/23/24 at 11:16 am
Posted on 2/23/24 at 11:18 am to anc
quote:
We bought for $700k and similar listings are $1.5MM now.
Think I'll wait for the next crash.
Posted on 2/23/24 at 11:34 am to LSUbub12
quote:
I forget this is the most literal board. Point remains it’s been a good investment while having a condo to go to anytime she likes. Plus my MIL is well diversified and is doing extremely well in other investments. I didn’t mean to start an argument.
I didn’t mean to either. I don’t really think of it as a good investment. Especially if she wasn’t renting it out the entire time. Now it probably was a good purchase if she and her family enjoyed it and especially if she did more than break even during her time owning and using it. So many underestimate the return they get with real estate by looking at the “it’s worth x times more than I paid”. This is often because they only look at purchase price, not the thousands of other things they paid to carry, own, maintain and insure your investment. It’s really hard for any real estate “investment” that isn’t cash flowing each month to beat the S&P over the last few decades. Hell it’s hard even if they are.
But as you point out it’s something people use as more than an investment.
Posted on 2/23/24 at 11:38 am to mikeytig
Not sure we’ll see another 2009 crash
Now that institutions are buying properties seems to have changed the real estate market significantly and permanently.
Now that institutions are buying properties seems to have changed the real estate market significantly and permanently.
Posted on 2/23/24 at 11:59 am to Dawgfanman
quote:
I didn’t mean to either. I don’t really think of it as a good investment.
As an owner in Destin that is doing well due to appreciation, I think this is a fair statement.
I really think you have to make the decision based off more than a pure investment thesis (ie personal use now or in future etc). We love it and are doing well but it is challening math compared to other investments if the appreciation doesnt push hard
Posted on 2/23/24 at 1:27 pm to GeauxTigers123
Almost impossible to find anything renting for 1 percent of the purchase price.
My strategy for LTR has been
1. Affordable rent in college towns
2. Older houses that have been updated in good school districts.
As others have said, the appreciation train is slowing down. Deals are going to start floating to the top in next couple years but now is not a good time to be buying.
My strategy for LTR has been
1. Affordable rent in college towns
2. Older houses that have been updated in good school districts.
As others have said, the appreciation train is slowing down. Deals are going to start floating to the top in next couple years but now is not a good time to be buying.
Posted on 2/23/24 at 2:44 pm to Tifway419
quote:We have kids.....
My thinking (moreso hoping) is that when I retire in 20 years, all of the baby boomers who are currently buying up and retiring in beach homes/condos will die off and it will be a buyers market.
It's not like Boomers with '57 Chevys or Model A Hotrods (which their kids do not want).
I do have a Coin Collection and some rare books that they don't want*.
Our family has grown up going to Perdido since the mid '90s; my kids will not let my interest there go away.
Maybe they'll be a correction in Orange Beach real estate. It's crazy the appreciation over the past decade plus.
*And I used to have some firearms previous to my sad boat accident mid-stream of the Mississippi River in the fog where I lost them all that none of them would have wanted too....
Posted on 2/24/24 at 1:40 am to anc
Buy some 1-2br condos in Tuscaloosa or Athens near campus. I have clients who do, and they stay rented. They’re pretty cheap too. Get you 10 of them and let the profits buy 11, 12, etc.
Posted on 2/24/24 at 4:17 am to Captain Want
Back in 1984 my dad took us to Destin. He had some investors wanting him to buy a few Condos. Turns out it was San Destin and the 2 original towers. Wasn’t shite there at the time but sand and pine trees. They wants 84K for 3 BD room at the time. We left and my dad said that no way these fricking things make it way out here in the middle of nowhere. I still get a rise out of him today about it. He says he should have borrowed a million at the time to buy 12 units.
This post was edited on 2/24/24 at 4:18 am
Posted on 2/24/24 at 8:35 am to lsufan1971
quote:
Back in 1984
quote:
He says he should have borrowed a million at the time to buy 12 units.
Eh, that area supposedly had a big lul back in the late 80s when the oil market crashed, so it probably would have been tough to bridge the gap.
Idk if it is true but I’ve always heard that that is why there is only one side to the pyramid building.
Posted on 2/24/24 at 9:00 am to baldona
quote:
250k invested in “the market” with all dividends reinvested would be nearly 1.5 million today. This is based on average S&P returns since then.
lol, what? Show us the math here. $250k in 2009 is not worth 6x in 15 years.
______________
I get that the statement seems exaggerated at first glance but without doing any real math, the accepted premise of doubling every 7 years gets you this.
Year 0. $250k
Year 7. $500k.
Year 14. $1M.
Year 21. $2M.
The past 15 years have been better than average, so not as crazy a statement as it appeared.
250k invested in “the market” with all dividends reinvested would be nearly 1.5 million today. This is based on average S&P returns since then.
lol, what? Show us the math here. $250k in 2009 is not worth 6x in 15 years.
______________
I get that the statement seems exaggerated at first glance but without doing any real math, the accepted premise of doubling every 7 years gets you this.
Year 0. $250k
Year 7. $500k.
Year 14. $1M.
Year 21. $2M.
The past 15 years have been better than average, so not as crazy a statement as it appeared.
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