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tropheus12
LSU Fan
Baton Rouge
Member since Mar 2019
17 posts

Grand Isle rent game.
I am curious if any of you guys have rental property in Grand Isle?

I "believe" that the cost of vacation rental in GI is fairly high compared to a lot of other destinations on the Gulf Coast, especially when you consider the cost of the house and property in GI vs higher cost of properties in places like Florida, yet I find rent cost is comparable between the two if comparing apples to apples.

My question
Can incurring debt to build or buy rental property in GI be a net positive asset? The thing that has me the most concerned is insuring the property.

Any comments/opinions about the Grand Isle rent game is welcomed.






headedwest21
LSU Fan
Member since Dec 2016
595 posts

re: Grand Isle rent game.
Can confirm that insurance on a modest small family camp is high as giraffe you know. Can only imagine on a big expensive camp. Another thing is competition as it sure seems like 50% of the places down there have a for rent sign.


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20
PillageUrVillage
LSU Fan
Mordor
Member since Mar 2011
9186 posts
 Online 

re: Grand Isle rent game.
A lot of camp owners that I know rent out their camps just to help pay the insurance.


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keakar
Member since Jan 2017
10560 posts

re: Grand Isle rent game.
the cost differences are about competition, grand isle is the only game in town for this state so prices dont have to be low, just low enough to get rentals

as for insurance, dont bother with anything other then liability, any other insurance will be stupidly insane high and all your profits will go to just paying for that so you wont make any money

if you are buying, buy a fixer upper and do minimal repairs and just cover things up with paint. its not your house, its a rental.

in any given year it could be gone with just one hurricane, so dont spend a single penny you dont have to if you want to make money renting it. with luck its pays off what you spent on it before you ever have to deal with major storm damage.

if you are building then learn from others. the permanent structures there are all made of concrete filled cinder blocks for ground level or are overbuilt and designed to let the walls cave in to save the main structure and foundation so after storms you rebuild it fast and easy or in the case of ground structures you can just wash all the mud out the front door and replace the furniture and your ready to rent again.

off hand i dont see it as a good or smart income property investment at all, the risk and costs are high so you are much more likely to just break even then make money. i think most people who do this buy it as their own camp and just rent it out when they dont use it to let the rent pay for insurance and upkeep expenses by renting
This post was edited on 7/7 at 3:09 pm


HotKoolaid
Member since Oct 2017
368 posts

re: Grand Isle rent game.
When I was shopping insurance on an average property off the beach was right at $4,000/year


tropheus12
LSU Fan
Baton Rouge
Member since Mar 2019
17 posts

re: Grand Isle rent game.
Good info here.

For most of my life we have had a family camp and then I had my own little camp but had to sale in divorce. I want to get back on the island but it is hard to make the numbers work (risk/insurance). I am just trying to figure out if renting could be the answer.



Motorboat
LSU Fan
At the camp
Member since Oct 2007
19010 posts

re: Grand Isle rent game.
quote:

When I was shopping insurance on an average property off the beach was right at $4,000/year


How long ago? that sounds cheap.


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20
SOLA
There
Member since Mar 2014
1259 posts

re: Grand Isle rent game.
Rentals on GI are pretty high.


jimbeam
USA Fan
University of LSU
Member since Oct 2011
55141 posts

re: Grand Isle rent game.
Don’t see how buying down there is a good investment, from a financial perspective.


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Tiger Prawn
LSU Fan
Member since Dec 2016
12067 posts

re: Grand Isle rent game.
quote:

as for insurance, dont bother with anything other then liability, any other insurance will be stupidly insane high and all your profits will go to just paying for that so you wont make any money


OP mentioned taking out a loan to buy/build so he's going to have to carry hazard, wind/hail, and flood insurance.

To OP, if you go the new construction route, your insurance will generally be much cheaper because of everything being up to newest building codes. And you can build higher to reduce flood insurance costs.


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USA
Member since 2001
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redneck
New Orleans Saints Fan
Los Suenos, Costa Rica
Member since Dec 2003
50951 posts

re: Grand Isle rent game.
Coworker bought a place in a canal off the Jourdan River in Bay St Louis and rents it out the majority of the time and makes good money off it. He sets the rates just below the casinos rates and stays so full that he has to block out weekends way in advance for he and his family to enjoy it


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40
KemoSabe65
Member since Mar 2018
1513 posts

re: Grand Isle rent game.
Define CHEAP?
G.I. would be the last place i would look for investment rentals, season is too short, not enough to do other than fish, ghost town from Nov-Apr.


Tiger Prawn
LSU Fan
Member since Dec 2016
12067 posts

re: Grand Isle rent game.


I said cheaper, not cheap. There's nothing "cheap" about insuring property in Grand Isle.

quote:

G.I. would be the last place i would look for investment rentals, season is too short, not enough to do other than fish, ghost town from Nov-Apr.

I don't know much about Grand Isle rental industry but looked into FL panhandle vacation rentals a few years back. From what I found on that, if you had a mortgage then you'd be lucky to just break even on cash flow after insurance, maintenance, condo HOA dues, and property management company fees. You'd just build equity over time as the mortgage was paid down and hopefully property values increased, with the perk of having a place on the beach to take your own family whenever it wasn't rented.

I'd have to guess Grand Isle would be similar situation. Probably not break even on cash flow, but if you liked going fishing down there often, you benefit by having renters subsidize the cost of your camp.


jimbeam
USA Fan
University of LSU
Member since Oct 2011
55141 posts

re: Grand Isle rent game.
Like all vacation rentals, the peak earning dates typically align with dates you want to use it. Thus, it turns into a subsidized (even if only partial) property you use in the offseason. But who wants to spend a lot of time on the island in November compared to June.


fishfighter
LSU Fan
Baton Rouge
Member since Apr 2008
33394 posts

re: Grand Isle rent game.
quote:

When I was shopping insurance on an average property off the beach was right at $4,000/year


Know someone that is paying close to 10K for a camp on the beach.


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headedwest21
LSU Fan
Member since Dec 2016
595 posts

re: Grand Isle rent game.
quote:

spend a lot of time on the island in November


October up until duck season my favorite time to be down there. Cooler weather plus no people to fight over fishing holes


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30
baldona
Auburn Fan
Florida
Member since Feb 2016
9662 posts

re: Grand Isle rent game.
quote:

G.I. would be the last place i would look for investment rentals, season is too short, not enough to do other than fish, ghost town from Nov-Apr.


If you enjoy fishing and hunting that's a great time to be there and use it. If you want to own a vacation rental property, you should really only buy one that you love to use in the off season. If you only love to use it in the rental season, then it is likely to never work out financially to own it.


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10
cuyahoga tiger
LSU Fan
NE Ohio via Tangipahoa
Member since Nov 2011
4331 posts

re: Grand Isle rent game.
Buy a lot for 20/ 30,000k put a $20,000 camper on it and insure the camper for $500/year... when hurricane blows the camper off you collect insurance and buy another...five grand for a pad, five grand for a canopy ...over and out... not investment grade but fishing grade


diehard24
LSU Fan
Member since Oct 2006
259 posts

re: Grand Isle rent game.
do they have any lots for $20k/$30K?


Wilson
LSU Fan
Metairie
Member since Jul 2011
131 posts

re: Grand Isle rent game.
FYI - I'm pretty sure there's an ordinance on Grand Isle that you can't have rental property more than 100 yards off LA 1 or something similar.


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