Oh, I see, the instant equity is based on an appraisal. Whew, glad you cleared that one up for me.
Or until recently, what your lender would offer you through a HELOC. Those days are over, at least for the foreseeable future.
Oh, I see, the instant equity is based on an appraisal. Whew, glad you cleared that one up for me.
AA -- Please further explain your definition of this value bottom / safe standard you speak of. Do you mean that the rental income covers ALL costs + some (mortgage, maintenance, tax, insurance, etc.)?
If so... in 15 years of owning/living in SoWal, I've only ever heard of "cash flow off rental income" actually occurring on those little studio condos north of 30-A in Seagrove... and then, only IF they were purchased prior to 1995 for under $60.0.
Is that the kind of bottom you're talking about?
I feel the same. I'm thinking we may be at the floor too. I'm sure there will be some isolated cases still, especially since we're moving into the off season. I'm thinking if we can get through till February without another drop, that it will start inching up again. Who knows, maybe it's headed there now. It's just too early to tell. It will be interesting to chart other groups. I'm thinking beachfront condos, rosemary, watercolor. It will also be interesting to watch some condo complexes in PCB.
Can you also graph the number of homes sold each month? The sample size is likely very, very small on a month to month basis making it very difficult to draw any conclusions regarding trends.
Also, does your graph include all sales including foreclosure sales, short sales, etc?
It would be interesting to see the same graph for all of walton county and one for sowal from inlet beach to sandestin. Larger sample size lending a bit more credibility to looking at trends.
I was the one who did the graph Fisher. Yes, it does include short sales and foreclosures.
AA -- Please further explain your definition of this value bottom / safe standard you speak of. Do you mean that the rental income covers ALL costs + some (mortgage, maintenance, tax, insurance, etc.)?
If so... in 15 years of owning/living in SoWal, I've only ever heard of "cash flow off rental income" actually occurring on those little studio condos north of 30-A in Seagrove... and then, only IF they were purchased prior to 1995 for under $60.0.
Is that the kind of bottom you're talking about?
Cork, is that based on ECAR or Walton? Just curious.
Rule of thumb for cash flow on a vacation rental investment would be a factor of .10
If you purchased a condo for $250,000 and the rental income is $25,000 py, a 10% return is a good starting point when investigating an investment purchase. Haven't seen anything like that in years, but we may be getting back to that point in history.