Rental Investment Questions

[Lake View Too]

Well said. I think these guys are a bunch of very smart people, but boy, were they being a downer. Give Nina a call at 850-685-0198 and you will be dealing with one of the smartest and most positive realtors in this area. She's a real sweet person who will have your best interests in mind.

 

[30ashopper]

I know it's hard to hear these responses. I don't think anyone is trying to put you off as much as shed some light on the truth about a second home. I feel the same way you do. Every time I cross over the bridge, I feel like I'm coming home. I just somehow want a piece of my life to be anchored in SoWal. I can tell you my husband and I have done some serious number crunching over several years of market watching. I just can't ever make the numbers cover the monthly nut. I've heard people say they're breaking even or making profits. Maybe this is true, but I can't make it work with the spread sheet I'm using. The honest scenario we always come back to is, "What if it never rents?". We have to be good with that picture. As an owner of one home there always seems to be something coming up that needs our attention. It's the nature of the beast. Just keep that in mind. Your dream beach house will have the same scenario. We haven't given up on the dream, don't you either. Just look at all the angles before you jump. We've finally just said, "What the heck", and are now contemplating a full time move. I wish you the best a would love to hear what you guys decide. Have a great trip. We hope to be back down sooner than later.

Isn't that the truth... and if you let that "to do list" grow for just a little toooo long.. it can be painfully expensive catching it up. Homes down here get the crap beat out of them by the weather, that's for sure.

 

[TooFarTampa]

Well isn't this a happy group of people! This is the exact reason why I've only been a member of this forum since 2005 and haven't posted anything!
1) I didn't wake up one day and say .. "Hey I think I'll buy a property in my favorite vacation place" .. this has been 10 YEARS of coming there and thinking about doing this.. I stated that in my first Post.

2) Not a single one of you even know what I can afford. My primary home is completely paid for .. so as for a Mortgage here in TN .. That isn't an issue

3) Ever thought that I just might be paying Cash for my "Investment"?

4) The purpose of this post was to either make contact with or to have someone recommend a Real Estate Agent that would be willing to go over my Options (as in available homes and condos currently on the Market) But since I see that isn't the outcome I'm gonna receive, I will have to do that elsewhere.

So with that said .. to TooFarTampa .. Thank you for your kind words and tips.. When I do buy something.. I will implement some of them!

For the rest of you.. I'd go find a Dr to get that stick out that is shoved up ya wazoo :roll:

Hi Dreamin

Scooty is right ... we do tend to take care of each other here. This is THE place for straight talk, news, debate and info on SoWal from a very wide variety of personalities. Sometimes the gloves come off. If you've been lurking for awhile you know what to expect from the regulars. I would not be here myself if it were just a fluffy puffy place with lots of falsely cheery stuff. We pretty much keep it real.

The RE market slide has been very stressful, obviously, and a lot of people have learned some very hard lessons (yours truly included), and some of them have posted what they have here because they have been there and done that.

The story will be different for those buying into the current market. But our wounds are still a bit fresh, so bear with us.

It did sound from your original post that you might be hoping to get rental advice from Realtors, and if that is what you meant I don't think that's a good idea. Best thing to do is gather as much info as you can from as many owners and management companies as possible and use what you know for your specific situation.

There are lots of great Realtors who post here and I would bet you will get some PMs, if you haven't already.

And by the way, I'm sure you know this, but cash buyers are always

Good luck!

 

[Beach Bound]

Ok I'm gonna start this off by saying .. I totally do not know what I'm getting into.. so this is why I'm turning to this board for some help and tips lol

My husband, kids and myself have been coming to the area for vacations for the past 10 years and we would love to put some of that money that we are throwing away on rentals into an Investment. Our goal is to purchase a property there and put it on a Rental Program while we are not using it.

We have A LOT of questions about how this all works and welcome any tips from people already doing this. We will be there in the area the week of Sept 19-26th and was wondering if any Real Estate Agents would be willing to sit down with us and discuss our options. We would also love to hear or meet with other Property owners who could give us some words of wisdom.

I'm sure it'll be a stressful adventure that we are wanting to take on, but in the long run.. What is more wonderful then having a place we can call our own in our favorite place on earth!

Thanks in advance!

We are sooo happy we made the decision a few months ago to buy a second home in Sowal. It is so great to know here in Chicago that we can jump on a plane (especially come May 2010 - nonstops??) and totally relaxxxx. We have been thrilled with the number of rentals booked through Watercolor at our home there. So far so good. We too look at it as a way to cover expenses and not to "cash flow". Keep in mind that peace of mind in knowing you have a great "happy place" for yourself and your kids in the midst of the chaos of life. I wouldn't encourage anyone to get in above their head. But hey, if you have thought it through for years and are comfortable...go for it!! Don't analyze spread sheets too much. Life is short. Only you can know what is right for you. Trust your gut.

Beach Bound

 

[SHELLY]

Well isn't this a happy group of people! This is the exact reason why I've only been a member of this forum since 2005 and haven't posted anything!
1) I didn't wake up one day and say .. "Hey I think I'll buy a property in my favorite vacation place" .. this has been 10 YEARS of coming there and thinking about doing this.. I stated that in my first Post.

2) Not a single one of you even know what I can afford. My primary home is completely paid for .. so as for a Mortgage here in TN .. That isn't an issue

3) Ever thought that I just might be paying Cash for my "Investment"?

4) The purpose of this post was to either make contact with or to have someone recommend a Real Estate Agent that would be willing to go over my Options (as in available homes and condos currently on the Market) But since I see that isn't the outcome I'm gonna receive, I will have to do that elsewhere.

So with that said .. to TooFarTampa .. Thank you for your kind words and tips.. When I do buy something.. I will implement some of them!

For the rest of you.. I'd go find a Dr to get that stick out that is shoved up ya wazoo :roll:

...just for you--who states up front, "I totally do not know what I'm getting into"--NOW is a great time to buy! Let loose the Realtors!
.

 

[DreamnOfFL]

We are a happy group of people and we take care of each other - which is why everyone was trying to make sure you had all the information and were aware of the negatives before making a big decision.

There are a lot of 2nd home owners who WISH they had gotten such "stick in the wazoo" advice, because they are currently finding it out the hard way.

Really? I don't find the things said such as ... "Go away and learn to crunch some numbers before you "invest" in anything." or "Dream on Dream of Fl." to be useful or needy.
I never knew when I titled this as "Investment" it would be such an issue. Any purchase you make in Real Estate is a gamble and can be an investment.. and also a flop.
The current home I own could be flattened by a tornadoe.. or sucked into the ground in an earthquake! But in the end of it all.. those are things that are out of my control.
Also out of my control is the goal of moving there at this moment full time.. or I would. My husband owns a well established Electrical Business which we can't just up and move to FL. Along with the fact that I have a very ill mother that I can't up and move away from. This is where the desire to purchase a property there for us to use came from... Because basically ANY rental we were lucky to get would have been profit in our book.

The ones that were trying to actually look out for me and give me advice... not wanting me to get in over my head was fine. It was the others that really crossed the line. You can get your point across without being crude and heartless... And thats all I ask.
With that said .. I got some PM's from friendly people who have given me some Realtor names. All and all .. I believe that's all I was asking for along with "Helpful" tips. I guess some people have different meanings for that word.

 

[Mermaid]

Really? I don't find the things said such as ... "Go away and learn to crunch some numbers before you "invest" in anything." or "Dream on Dream of Fl." to be useful or needy.
I never knew when I titled this as "Investment" it would be such an issue. Any purchase you make in Real Estate is a gamble and can be an investment.. and also a flop.
The current home I own could be flattened by a tornadoe.. or sucked into the ground in an earthquake! But in the end of it all.. those are things that are out of my control.
Also out of my control is the goal of moving there at this moment full time.. or I would. My husband owns a well established Electrical Business which we can't just up and move to FL. Along with the fact that I have a very ill mother that I can't up and move away from. This is where the desire to purchase a property there for us to use came from... Because basically ANY rental we were lucky to get would have been profit in our book.

The ones that were trying to actually look out for me and give me advice... not wanting me to get in over my head was fine. It was the others that really crossed the line. You can get your point across without being crude and heartless... And thats all I ask.
With that said .. I got some PM's from friendly people who have given me some Realtor names. All and all .. I believe that's all I was asking for along with "Helpful" tips. I guess some people have different meanings for that word.

Unless there have been posts deleted since the last time I looked, I do not understand why you are being so rude to all the people who answered your question out of their own experience. What's "crude and heartless" about being truthful, (truthful being the good, the bad, the ugly...not just the good)! Were you looking for unicorns and rainbows? Everyone was looking out for you. Would it have been "helpful" for anyone to paint a 100% rapturous picture of owning property in SoWal? I think not. But, to paraphrase you, "I guess some people have different meaning for that word." I think you are out of line lashing out because you didn't get the answers you wanted.

BTW--lest you think I am a disgruntled owner, I am not. We own a condo here and I will never regret buying it. But I am not blind to the fact that there are, sometimes, as many disadvantages to owning as there are advantages. I would never tell anyone to "go find a Dr. to get that stick that is shoved up ya wazoo" for merely pointing out that both go hand in hand, as you have done. Shame on you.

 

[Matt J]

Dreamnoffl,

I strongly recommend you use Beach Rentals of South Walton, they have a real estate agent in the office for your convenience.

 

[Matt J]

SWGB,

You gave great information until the bigger does not rent better.

Our experience has been bigger books earlier , rents at a higher rate and has a much large demand relative to availability. Now bigger may not be the best choice for everyone because of other factors, but bigger rents much, much better.

Hey Rather B,

I'm not being snarky, but what is your occupancy rate for October through March?

I guess the point got lost since I was pointing out that someone who might desire a huge house now, might not need 6-7 bedrooms when they retire. Having worked in rentals I also understand that generally owners who have larger houses do have to hold back income from the spring and summer months to cover the lack of income during the fall and winter.

It would just be much simpler if this place was booked year round, but it's not and I'd hate to see a first time rental owner get excited that their rental bank account was busting at the seams by the end of the first summer. ;-)

 

[Matt J]

I'll leave everyone with the best financial advice anyone ever gave me:

Be careful of advice about finances/real estate that you take from friends, family, and random strangers. Nobody likes to look stupid and people will lie to keep from looking foolish. Unless you have access to someone's financial records take that cash flowing rental, incredible interest rate, or great deal with a grain of salt.