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re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by Im4datigers on 6/30/22 at 10:30 am to Aubie Spr96
quote:
Basically-it pays it's holding costs but no more. At the end of the day I'm getting an appreciating asset paid for and that doesn't suck, but it's not making me rich.
This is all I’m looking for. I just want something that holds its own. Might take a 10% nose dive in value, but in the long run (15 yrs) it’s going to fetch what I paid for it or more.
I know nothing is guaranteed, but some of you are worried about buying in the short term as you’re going to be underwater. I’m not worried about being under water for a little while, I just don’t want to drown. It’s a long term hold and usually in a long term hold you’re not going to get burned too badly. The flippers and short term deals are where you get hammered.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by nolaTiger24 on 6/30/22 at 10:30 am to tide06
I have a house in Seacrest Beach in-between Alys and Rosemary. Purchased the lot in March of 2020 and completed construction November of 2021. Was the perfect time as we have already received several offers more than double of what we are in it.
We use the house a good bit but will always rent it out from June 15th - August 15th since its so crowded down there. Including those 8 weeks, we need 20 weeks to have $0 out of pocket expense. We will hit 20 weeks in August this year. I expect we will end up around 28 weeks rented out. We did use a good bit of cash so we have a low mortgage. If things continue we should have it paid off in the 7th year.
Insurance is cheaper than my house in Metairie. Management fees are 18%.
The market has definitely started to cool in the last 4 weeks. I haven't seen many price drops in the last 2 years until now. I am going to continue to watch but planning to purchase another home by the end of the year.
We use the house a good bit but will always rent it out from June 15th - August 15th since its so crowded down there. Including those 8 weeks, we need 20 weeks to have $0 out of pocket expense. We will hit 20 weeks in August this year. I expect we will end up around 28 weeks rented out. We did use a good bit of cash so we have a low mortgage. If things continue we should have it paid off in the 7th year.
Insurance is cheaper than my house in Metairie. Management fees are 18%.
The market has definitely started to cool in the last 4 weeks. I haven't seen many price drops in the last 2 years until now. I am going to continue to watch but planning to purchase another home by the end of the year.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by Im4datigers on 6/30/22 at 10:33 am to nolaTiger24
quote:
I live in this area. Wife is a title agent. now is not the time to buy for this stuff. We are either at or have just passed the peak. in a year or two you will have options to buy from people who are under water.
Exactly what I’m seeing. I’m seeing 5-10% price reductions almost every day. I’m just continuing to watch.
Who’s your go to realtor down here? And it seems like getting a p&l on some of these properties is like pulling teeth. You can kind of back into your breakeven given the market rates, management fee, taxes etc but I’d still like to see how much something has been rented during the year. Seems like that 25ish week per year is the magic breakeven number.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by nolaTiger24 on 6/30/22 at 10:35 am to nolaTiger24
quote:
If you can rent it out 80% of the year (269 days) you’d bring in around $20,000 a month in rental income.
No chance. I would be willing to bet less than 5% of properties rent out for 41.5 wees per year. The average by us is 24 weeks per year. Nightly rates have sky rocketed in the last two years so you have to expect that to level off as well.
This post was edited on 6/30 at 10:37 am
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by Im4datigers on 6/30/22 at 10:51 am to nolaTiger24
Yeah rented out 80% of the year is a joke. If somebody buys something going in with that mentality they are going to be absolute toast.
There is also a lot of upkeep on these houses. I’m sitting in a $3.5mm house in seaside right now. It’s nice, but has been ridden hard and put up wet.
There is also a lot of upkeep on these houses. I’m sitting in a $3.5mm house in seaside right now. It’s nice, but has been ridden hard and put up wet.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by horsesandbulls on 6/30/22 at 1:44 pm to Im4datigers
quote:
Who’s your go to realtor down here?
most are sharks and just do it because they can sell a house or two and be set. I can get a list from my wife of people she likes working with at the closing table and who to stay away from.
We started looking at getting a rental property in late 2020 but her boss advised us against it at the time. I'm going to wait until things drop significantly more. I live in destin and the houses that are 3 blocks away from the harbor are moving unbelievable fast. 2 have gone on the market and been under contract 4 days later on my street alone.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by Im4datigers on 6/30/22 at 1:58 pm to horsesandbulls
quote:
most are sharks and just do it because they can sell a house or two and be set. I can get a list from my wife of people she likes working with at the closing table and who to stay away from.
100%. I’m a commercial real estate lender and residential agents are morons (99% of them at least). I don’t want somebody pushing a product. I want somebody that knows the market and will steer me right.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by PUB on 6/30/22 at 5:07 pm to LesMilesNoMoe
Stupid prices - DOUBLE of 12 to 24 months ago for JUNK.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by SouthlakeTiger on 6/30/22 at 5:31 pm to Im4datigers
Here is my scenario for you.
Bought a nice condo in the right part of Orange Beach at the right time and paid $470k cash for it. I gross 45k a year and pay 20% management fees plus $750 HOA monthly fees. Pay $800 yearly insurance and Just got hit with a 12k assessment. My only other bill is average $100 electric bill.
Was offered 800k (thru realtor) a month ago. I wanted to take the money and run but wife and kids would disown me.
Bought a nice condo in the right part of Orange Beach at the right time and paid $470k cash for it. I gross 45k a year and pay 20% management fees plus $750 HOA monthly fees. Pay $800 yearly insurance and Just got hit with a 12k assessment. My only other bill is average $100 electric bill.
Was offered 800k (thru realtor) a month ago. I wanted to take the money and run but wife and kids would disown me.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by Im4datigers on 6/30/22 at 5:35 pm to SouthlakeTiger
Yeah that’s the only reason I don’t want a condo esp high rise condo. I don’t to get hit with special assessments out of left field. I hear if that a lot.
Honestly, and don’t take this the wrong way, but my feeling is that places like orange beach, Pensacola, ft Walton suffer first particularly on the rental income. Those the pride elasticity is there as with recessions those folks aren’t spending as much or vacationing as much. It SEEMS like places like seaside and water color tend to attract the more higher ticket vacationer and thus aren’t as prone to recession and price elasticity.
Interested to hear others take on that though.
Honestly, and don’t take this the wrong way, but my feeling is that places like orange beach, Pensacola, ft Walton suffer first particularly on the rental income. Those the pride elasticity is there as with recessions those folks aren’t spending as much or vacationing as much. It SEEMS like places like seaside and water color tend to attract the more higher ticket vacationer and thus aren’t as prone to recession and price elasticity.
Interested to hear others take on that though.
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re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by Sput on 6/30/22 at 5:43 pm to TigerMan327
quote:
And you expect 80% occupancy throughout the year
This actually isn’t unreasonable right now. There really isn’t an off-season until Joe finally kills the economy.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by LChama on 6/30/22 at 7:40 pm to horsesandbulls
Cool i reserved this week about four months ago! Theyve already dropped weekly rates 20% since i locked in. Story of my f’in life.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by TigerMan327 on 6/30/22 at 8:44 pm to Sput
It’s very unreasonable. Especially at an average nightly rate of $800. If you want the snow birds you are dropping the price a ton
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by mule74 on 6/30/22 at 8:49 pm to Im4datigers
quote:
Slowly declining over the past few years.
As someone who just built a house in Watercolor … where have you seen these declines over the past few years. We have seen prices approaching $1000 a sq ft.
Just in the past month have we started to see the correction. I expect it to come swiftly based on some of my friends in the area.
I would look to buy in 2023.
If you want real ROI, by some crap bungalows in PCB off the water. Then rent them to aging hippies before flipping them to a developer in a decade.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by deathvalleytiger10 on 6/30/22 at 9:21 pm to Im4datigers
quote:
It SEEMS like places like seaside and water color tend to attract the more higher ticket vacationer and thus aren’t as prone to recession and price elasticity.
I caution against this assumption. Inflation is here to stay for awhile and we are going to see people backing off the higher rents of RB, etc. I’m looking to buy as well, but right now we are at a peak imo. As people look to vacation elsewhere along with reducing their costs, many of these homes will not cash flow enough to cover expenses. Now the insurance industry is dramatically changing rates which only add to to the owners costs. My bet is a couple of years from now we will see some much better prices
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by GEAUXT on 6/30/22 at 9:59 pm to Im4datigers
This is a hilarious example...
realtor.com
5/14/21 - $1,870,000
6/17/22 - $4,500,000
That is simply retarded
realtor.com
5/14/21 - $1,870,000
6/17/22 - $4,500,000
That is simply retarded
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by TigerDeBaiter on 6/30/22 at 11:57 pm to GEAUXT
quote:
The prices need to come down ALOT. in Rosemary prices have doubled, or more, on almost everything in the past 2 years. It's insane.
This. I’m watching, but things will have to get real bad for them to attractive at all.
Yeah, it's comical.
We go to Rosemary 8-10 times a year. We have been wanting to get a place, not to rent just for us. However, I could never bring myself to pay the hyper inflated prices. We need to keep reminding ourselves that it's still WAY cheaper to rent.
We go to Rosemary 8-10 times a year. We have been wanting to get a place, not to rent just for us. However, I could never bring myself to pay the hyper inflated prices. We need to keep reminding ourselves that it's still WAY cheaper to rent.
re: Rental properties - Sandestin, Seaside, Seagrove, Water colorPosted by Shaun176 on 7/1/22 at 9:46 am to Im4datigers
You have to be able to cover your costs with out depending on rent it brings in.
If a hurricane hits or there is another oil spill, you might not be able to rent it out for months.
Only people that make money are people who live in the area and manage their own properties.
If a hurricane hits or there is another oil spill, you might not be able to rent it out for months.
Only people that make money are people who live in the area and manage their own properties.
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