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QUOTE=Donna]I would be surprised if any home purchased in the last four years was showing even a small net profit if financed conventionally. We bought a larger house (appreciably higher rent in these houses), put 20% down and financed the remainder in a tool that allows an option for paying the interest only. _________________________________________________________________
I bought 2 townhomes 2 years ago, and I broke even on the 4 bedroom and almost broke even on the 2 bedroom. Put 20% down on each and have low 5% or so 30 year fixed on both of them. (Ok, I cheated and handled my own mortgages)
I gave away the 4 bedroom last year because we had transitions in our association, and had personal things to attend to, so I booked it fully early in the season. I did raise my rate this year , and I am on the Board and we spent money on exterior renovations as well and grounds, so I guess it did get eaten up, Unfortunately I did not get repeaters this year due to the problems we had last year. But this year, I have had everyone happy
, and a few rolled over deposits for next year. I made a point to call each family when they arrive, my housekeeper leaves fresh Mangos
on the table, and now they call or e-mail me when they get home thanking me for sharing the house. If I had to sell them now, I would be able to to make a profit. Not a huge one, but I wouldn't take a loss.
Oh, and my husband and I re-newed our vows on the beach for our 10 year wedding anniversary about 3 weeks after Hurricane Ivan. There was no place we would have rather been, or would have been more appropriate.
Even with the hurricanes, people seemed to get right back on the beach and on with their lives right afterward when it was safe to go back on beach.
A friend took pictures of the beach replenishment completed in SanDestin from one of the high rise condos- before and after shots, and there is a huge difference now. I think word will get out, and people will be less skittish and book earlier next year.