Mortgage Recommendations/Questions on Beach Property - Orange Beach/Perdido Key

Buy a one bed on the beach for the highest returns

Ask about pending assessments. My realtor there tells me there are a lot of $10-15,000 assessments coming for repairs from Sally last year and things like elevators and exterior coverings. You buy it and you could be paying that next week. I’m waiting for those to come through hoping it leads to more inventory on the market and pushes some prices down. Prices have been insane there the last year with cheap interest rates and covid escapees.

I own two condos and used The Barr Group when I purchased one of them and am refinancing my other one with The Barr Group. They are in Gulf Shores. A lot of people on this board hate beach condos as investments, but mine have done extremely well this year and do well every year. I have a Phoenix V three bedroom that has done $70K so far this year and a Phoenix I one bedroom that has done $48K. Yes you periodically have assessments with condos, but you also periodically would spend money to maintain the structure of a rental house too. I would be very cautious of buying a condo that brags they don't have assessments. That just means the building is crap. Salt water and ocean air is brutal on anything metal and coatings.

Good info by all

I just bought at the … and did a pledge with my investment account through Morgan Stanley. I had no idea it was an option until they told me About it (your 20% down payment is a pledge that is invested and grows)

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At today’s prices don’t plan on much rental income if you’re borrowing money for the condo. Rental company fees, condo association fees, special assessments, insurance, replacement of condo items, ongoing maintenance issues etc etc.

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Rental prices are about to start going up at a pretty rapid pace. People have proven they will pay it.

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"Start" going up? They've been insane all summer.

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True. Continue going up. Looking at next years prices they are about 10-15% higher than last year for places I have stayed.

Google Morgan Stanley pledged asset feature in lieu of cash down payment for mortgage. That’s exactly what it is; my investment account shows a mortgage with a separate “pledged asset” account that I cannot touch which is my down payment. They are invested funds.

My recommendations are you need to look around now and figure out what you want OP, then figure out how much it’s worth to you and what you will spend.

In a hot real estate market things move fast and you don’t want your emotions to make the decisions, “we need to increase our bid or we won’t get this and it’s perfect for us!!!”.

You want to be able to walk away or bid on a good deal.

I would talk to both a local to you and local beach lender. Most of the time it won’t matter who you use. But I have heard of some out of state lenders having restrictions, one lady told me her local to her bank wouldn’t allow a condo purchase as she didn’t own the ground under her. I tried to tell her that was idiotic but she stuck with it. I doubt you have that issue in Louisiana just saying.