02-09-2012, 12:40 AM #1
Best type of purchase for investment
I'm looking at potentially making a purchase for an investment property somewhere in the seaside/watercolor/seagrove area and wanted to know what you guys thought would be the best place to look to get the highest roi on a purchase of a condo. The price I'm looking at would probably be somewhere between $200-400K.
I've been doing quite a bit of research over the past couple of years and have found that it can be kind of hard to find really solid numbers for potential rent for different properties (unless they are in a current rental plan). But if any of you could shed some light on where I should be looking to get the best roi I would appreciate it.
Thanks in advance.
02-09-2012, 06:57 AM #2
WaterColor and Seaside have tremendous rental potential. If you don'e have too many monthly expenses ( large down payment or cash buy) a positive cash flow is a good thing.
There are some good deals tro be had.
02-09-2012, 10:11 AM #3
A lot of factors involved when purchasing a condo other than considering a return on your investment. Hoa fees and the stability of the HOA is very important. We have entire condo building sitting vacant because the HOA could not afford repairs/renovations. For rental information you can contact a property management company and they can give comparable rental rates and gross yearly income if the property does not have a rental history.
02-09-2012, 10:38 AM #4
- Join Date
- Apr 2005
- Blue Mountain beach
How much are you putting down? In your price range right now, I would lean you towards gulf front units in Seagrove that have really good history of rentals. Older units but really well maintained. Just don't think a home in those price ranges will get you the numbers you are looking for unless you wanna really get involved with it through VRBO. You can grow your numbers but it will take some hands on. If you need any assistance feel free to call. I have been working with several buyers trying to do the same thing so I have some properties in mind.
02-09-2012, 12:01 PM #5
- Join Date
- May 2006
- Seacrest Beach and WaterColor
I agree with Bobby. For your price point, you won't find many houses on the market that you can keep rented, because they won't be near the beach. Stay close to the beach. Here are a couple of properties you might want to consider. >>> See Listings
Also, when you talk about "investment," you bring out many questions. Are you self managing, hiring a mgt company, how much can you put down, etc. There is so much more to it than, where should I buy.
02-09-2012, 02:25 PM #6
I'm pretty sure that I would want to be somewhere near seaside.I know there are lite of nice areas up and down 30a but I've always enjoyed my time there.
Also, I'm not really interested in something that's stand alone, but would prefer a condo. And I understand the HOA and everything that goes into roi. Of course I would be looking at the total expenses involved with fees, prop management, taxes, replacement costs and etc.
Perhaps I should clarify a little more. What type property (factoring location and pricing) will you get the most income from your property while being somewhere in my purchase range +/- ? Example, is a watercolor condo at 450k going to produce a significantly higher percentage roi than a $300k gulfront condo in seagrove at a lesser known and smaller complex. (if the property isn't in great shape and full I'm not even looking at it.)
And what/where will offer the higher potential increase in future value? Which is a significant aspect of the investment for me.
I don't care about the property being small (or large), its primarily about the numbers.
If a property one place only costs 200k but also only produces 15k gross a year it's a dog compared to something double that which is producing 40k gross. And vice versa with a 200k property that could bring in 25k annually compared to 40k from a 375k property.
With that being said. I'm not looking to have to cash flow it (as the max I'd put down would probably only be somewhere around 25%). But I do want to be as close to cash flowing as possible. And yes, I know it's crazy to talk roi with something that's not cash flowing, but again I'm also looking at the potential for future growth as well.
I hope this helps further explain my first post. But it probably only confuses it:) and I'm having a hard time conveying my thoughts through my iPhone.
02-09-2012, 03:06 PM #7
- Join Date
- Jul 2005
- Near the ATL and in SoWal as often as possible
We have been interested in making an investment while prices are low. In thinking about the future and becoming old folks (if we're lucky--LOL), we thought a condo would be a good idea. But when 1000-square-foot condos are going for $415K in Rosemary north of 30A with a $2500 per quarter HOA, no way. We can afford the $415K, but when we die, I'm not sure that our daughter and son-in-law will be able to afford the HOA. I don't really want to be in an old condo that is beachfront with 8' ceilings, costs $1 million, and has a heavy HOA fee either.
I think that houses are a better investment than condos. At least you don't have to be subjected to the upstairs neighbors doing the nasty while you're trying to sleep or screaming kids in the units above and next door. And the HOA fees aren't as high.
We have a house at the beach, and our HOA is $800 a year, I promise you that we don't spend 4x$2500=$10,000 a year to maintain it. Actually not even $2500 a year.
Just my two cents.
Last edited by Beach Runner; 02-09-2012 at 03:07 PM.
02-09-2012, 07:12 PM #8
I can see your point on the high HOA fees. If I could get a nice sfh that is priced right and rents well without all of the HOA fees I'd be interested. But does something a few blocks from the beach really rent as well, or at least well enough that the lack of HOA fees would push it over the edge to be the best purchase?
02-10-2012, 06:10 AM #9
You can't go wrong in WaterColor if you buy right - the condos there are amazing also. WaterColor and Seaside have remained steady. Yes they have their glitches but overall the demand is high and prices have maintained.
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