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Started By
Message
re: Gulf Shores/Orange Beach condos
Posted on 2/24/24 at 11:56 am to Captain Want
Posted on 2/24/24 at 11:56 am to Captain Want
As late as 5 years ago you could still buy a GS/OB condo and not have to subsidize it too much. It is a completely different story today. I own a Phoenix V condo and here are my rentals and expenses -
Annual Expenses -
Electric - $1,800
HOA Base - $9,200
HOA Capital Assessment - $7,000
HOA Insurance Assessment - $14,000
Orange Beach Business License - $200
HO6 Liability Insurance - $1,500
Property Tax - $4,600
Rental Repairs - $3,000
Management Fee (20%) - $12,000
Total - $53,300
Rental Gross - $60,000
Net - $6,700
Loan Payments ($380,000 - 30 years) - $28,800
Net annual subsidy - $22,100
So I have to pay about $2,000 a month out of pocket. The good news is the condo that I paid $480K for about 5 years ago is worth about $800K today.
Annual Expenses -
Electric - $1,800
HOA Base - $9,200
HOA Capital Assessment - $7,000
HOA Insurance Assessment - $14,000
Orange Beach Business License - $200
HO6 Liability Insurance - $1,500
Property Tax - $4,600
Rental Repairs - $3,000
Management Fee (20%) - $12,000
Total - $53,300
Rental Gross - $60,000
Net - $6,700
Loan Payments ($380,000 - 30 years) - $28,800
Net annual subsidy - $22,100
So I have to pay about $2,000 a month out of pocket. The good news is the condo that I paid $480K for about 5 years ago is worth about $800K today.
1
Posted on 2/25/24 at 7:12 am to anc
Real estate sounds like a headache to me. The older I get, the less keys I want on my keychain.
Posted on 3/4/24 at 10:57 am to lsufan1971
Didn’t the original developers go bankrupt with SanDestin?
Posted on 3/4/24 at 11:00 am to Ramblin Wreck
quote:
So I have to pay about $2,000 a month out of pocket. The good news is the condo that I paid $480K for about 5 years ago is worth about $800K today.
I Wonder how this investment would compare to an S&P index fund return over the same time frame.
Posted on 3/4/24 at 10:10 pm to mikeytig
quote:
I Wonder how this investment would compare to an S&P index fund return over the same time frame.
I must have missed the part where he said he bought it as an investment. Maybe some people buy these purely to invest. But I’m guessing that many do it because they want the use an enjoyment for themselves and their families. Whatever rental income is generated simply offsets some of the expenses.
Posted on 3/4/24 at 11:47 pm to Triple Bogey
No to Perdido Key...better options here in Bama
Posted on 3/5/24 at 7:17 am to mikeytig
Not addressing this to you, but many people forget the initial investment is just the down payment. I put 15% down on my condo. $60k of $400k purchase price. That was in 2021. I could sell for $650k, so my $60k has quadrupled in 3 years. I run a small profit only because I self manage, but I just put the money into upgrades; so I am not sure how that math would work out (and then you have to factor in the 50 hours per year of actual work I do in managing it)
I do hope that in 30 years, my place is worth $1.2 million, a 20 fold return (again, with work and a small yearly profit hopefully)
I do hope that in 30 years, my place is worth $1.2 million, a 20 fold return (again, with work and a small yearly profit hopefully)
Posted on 3/5/24 at 7:21 am to Captain Want
quote:
doesn’t seem remotely possible for someone buying the same unit for $1.5M to rent and cover their costs
It's not
Posted on 3/5/24 at 7:24 am to AndyJ
Leverage-or ROI-in real estate-is something most people don't factor in.
The same leverage can used in any investment, including equities, but capital cost is high and most don't have the stomach for it
The same leverage can used in any investment, including equities, but capital cost is high and most don't have the stomach for it
Posted on 3/5/24 at 9:44 am to Captain Want
Used to own
Check out the board.
Ask for funds in reserve
Ask how many assessments they’ve had last 5 years and how much each cost
Check out the board.
Ask for funds in reserve
Ask how many assessments they’ve had last 5 years and how much each cost
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