Rental Investment Questions

Geez, was it something we said?

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:rofl: Naw what would make you think that.

Note to Moderator: Please change the forum name to "Click here if you want to be talked out of buying property in SoWal" ;-)

In all seriousness, I think the cash and carry approach will be easier for my lifestyle....and reading several of the discussions just makes it that much easier.

:rofl: Naw what would make you think that.

Note to Moderator: Please change the forum name to "Click here if you want to be talked out of buying property in SoWal" ;-)

In all seriousness, I think the cash and carry approach will be easier for my lifestyle....and reading several of the discussions just makes it that much easier.

It has nothing to do with being "talked out" of buying a property...it was more along the line of becoming enlightened to the fact that you weren't going to profit from an investment that would also serve as a "free" place to crash when you come for your vacation.
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Renting is easy and you won't feel tied down to just one place. No hassles of ownership. No hassles of finding your place damaged by the renters when you arrive for some peace and quiet at your palace. No risk of loss.

I wasnt trying to profit....I said several times it didnt matter if I had to put some money in...I was just wanting to cover as much as possible, but with everyones positive attitude it actually drove me the other way. I would assume someone like myself that it already a homeowner and stated paying for the entire home isnt a problem would already be aware of normal home maintenance and responsibilities. I was inquiring about rental and condo info....I got the info I was looking for but you guys should be a little more positive if you want to sell stuff at SoWal.....oh well I will be a great renter.

Cheers!

Remember this?

Im a little confused as how some may say beach property isnt an investment....if you buy a nice condo in the right spot for the right price....it can cash flow pretty easily or get real close....that looks like a good investment to me.....

I'm assuming you're no longer confused?

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Ok Snarky,

All of our homes are considered large. Three of our homes are 75% booked in October, mostly family, friends and clients per gratus. Two of our homes are 100% booked absolutely solid, from Thanksgiving thru April. Quite frankly the large homes do so well in the summer( rental rate and occupancy wise )that the off season rentals are icing on the cake. Having that prime season cash in hand is a good thing not a bad thing. Interesting enough, the last two rental seasons have been our two best. With less people buying, more people are renting.

What works for one person may or may not work for another. Paula does a great job with her homes and it works for her. I believe her post summarizes it the best. Buying into South Walton almost 10 years ago has the been the best decision we have ever made. Not only because of the property but because of the friends and neighbors we have met. I see market conditions as an opportunity not a problem.

Side note : Paul, please give Gretchen and Bob a big hug next time you see them. We missed an opportunity to see them a couple weeks ago.

Well Snarky, your turn what are your occupancies on your seasonal rentals that are the basis of your advice?

My experience was based on the 50+ rentals I managed. Growing up we had a beach house that we didn't rent out since we had too much personal stuff in it and didn't like the idea of strangers using it. We also rented various houses from St. George Island to Pensacola growing up when we wanted something different.

I'm assuming that your homes are located in Grayton and you don't mind weddings?

I guess I wasn't clear on my OP that location is a big part as well. Drive through Seacrest Beach, Rosemary, WaterSound, or WaterColor during January and February, ghost towns.

I'll also point out that your counting occupancy when the unit is "rented" by friends or family paying nothing. How does that income model work out?

I'm not trying to argue with you I just think the the OP is looking for information and that's what I was trying to give.

My final point of advice:

Many rental companies have provisions for use during peak times (Memorial Day to Labor Day) so it's something to take into consideration as well.

Grayton Beach, nope. Weddings, never. Snowbirds are the best.

Income model is simple. While expecting nothing in return from family, friends, vendors, and clients, the returns have far exceeded an off season weekly rental rate. The experiences that our family and friends have had at the beach have been priceless. We are so glad that we could do that for them. Additionally, our vendors and clients have shown their monetary appreciation many times over.

Everyone says the same thing. Sowal has the most beautiful beaches, the best restaurants, and they would love to go back next year.

If you could afford it, go for it. Life is about the journey not the destination.

RBP. I feel the same about experiences. I offer one of our cottages to friends every year in august so that we can travel together. Memories - absolutely priceless. We talk about our trip together all year long. We swoon over our memories (it's really the only guaranteed thing I can leave to the kids in the long-run). Owning a beach house was on my bucket list.

There's nothing wrong with owning a beach home that one can easily afford--especially if it's on your "bucket list." Now...when one talks about a beach home as an "investment"--that's a whole different animal.

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Well, sounds like this thread has given anyone thinking about buying a second home a lot to think about. Works for some people (like me) and not others. So, I have nothing more to add here.

My mind these days is focused much more on "is it worth paying for private college?" Even more so, how do you make private college worth it in the long run if a private is a really good fit for someone? But these aren't questions for this thread. I would think the trade-offs are even more complicated to figure out than for beach homes because the benefits/costs are less tangible.

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I think you should start a new thread regarding these thoughts, as we are also in a somewhat similar situation. HS Senior getting very excited and very much interested in an out of state university (public though so fewer scholarship opportunities - we are assuming anyway)
I would love to hear people's experiences & thoughts.

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Grayton Beach, nope. Weddings, never. Snowbirds are the best.

Income model is simple. While expecting nothing in return from family, friends, vendors, and clients, the returns have far exceeded an off season weekly rental rate. The experiences that our family and friends have had at the beach have been priceless. We are so glad that we could do that for them. Additionally, our vendors and clients have shown their monetary appreciation many times over.

Everyone says the same thing. Sowal has the most beautiful beaches, the best restaurants, and they would love to go back next year.

If you could afford it, go for it. Life is about the journey not the destination.

Miss Kitty. I would love to join you on one of my trips to SoWal and we can enjoy our beach homes and the beach together. Once the kids are in college, I'll be heading to SoWal much more often (that was the plan and it's getting closer).

There's nothing wrong with owning a beach home that one can easily afford--especially if it's on your "bucket list." Now...when one talks about a beach home as an "investment"--that's a whole different animal.

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I think we three are all in agreement with this!

Paula...you have a wonderful plan! I can tell you from experience that this empty nest syndrome is a good one!