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Miss Kitty

Meow
Jun 10, 2005
47,015
1,123
67
:eek:...wow! Is that north or south of 30A?
 

baky

Beach Comber
Jul 18, 2009
11
0
Kentucky
Well, if you get on VRBO you will see a two bed/2 bath condo sleeping 6 in WC renting from $1490-$2485 a week depending on the season. If your LUCKY you MIGHT rent 20 weeks a year. This is just to give you a model. A realtor can retrieve rental histories for the units. Anyway, lets say you have a rock-n-roll year and rent for 20 weeks. Here's a sample:

- 10 weeks of prime summer season @ $2485.00
- 06 weeks of prime spring break season @ $1990.00
- 02 weeks of winter/fall season @ $1245.00
-02 weeks of winter holidays @$1490.00

That is a total of $42260.00 in rental. Now if you use a rental management company they get anywhere from 25-40% of that. Let's be aggressive for you and say your with a 25% company and they only charge you 10% when you book yourself on VRBO, of which you do half the time. You would owe them $7395 for their services. You get $34865.00. Let's go even further and say you just bought the least expensive two bed/two bath condo in WC which is $595,000 for 25% off the asking price (which again is aggressive). You would buy the property for $446,250. If you financed, you'd put 20% down and have a mortgage of $357,000. Now ROUGHLY your monthly mortgage would be $2200.00 with only flood insurance. A condo in WC has a $1000.00 a month association dues. Your monthly nut is $3200.00 with only flood. That will run you $38,400.00 for the year. I don't have numbers on further insurance for a condo so I can't begin to speculate. O.k.,

phone/internet: $70.00
cable: $40.00
electricity: $150.00
heat: $150.00
interior maintenance/repairs: $300.00

total $710.00 a month or $8520.00 a year for a total of $46,920.00 in expenses.

That puts you at about $12,055.00 a year in the hole or approx. $1004.00 a month if you got the best deal in WC and had a banner year. Uhm, I am NOT a professional in any way, so these are just models I use. We've been walking the sidelines for a while now and this is similar to a model we use when number crunching.

Your purchase numbers are close, actually 500k.....but for 12k a year out of pocket and to have 32 weeks left over to rent to very aggressively or use for 12k....I cant figure out why is that so terrible....the numbers get better if you rent the condo 100% yourself on VRBO and pay a management company 10% all the time....which I know are out there. It looks like the condo could even make money with several weeks to boot........

Unlikely to happen scenario? You tell me.
 

melscuba

Beach Fanatic
Apr 22, 2009
260
38
Roswell, Ga hoping SoWal someday
Your purchase numbers are close, actually 500k.....but for 12k a year out of pocket and to have 32 weeks left over to rent to very aggressively or use for 12k....I cant figure out why is that so terrible....the numbers get better if you rent the condo 100% yourself on VRBO and pay a management company 10% all the time....which I know are out there. It looks like the condo could even make money with several weeks to boot........

Unlikely to happen scenario? You tell me.

I don't know how possible this scenario is. I have been using this for a home purchase in phase II. From the rental histories I have looked at, 15-20 weeks is not unusual for a three bedroom. The number of weeks on paper seems the same for four bedroom, you can just ask that much more per week. There is a long debate about number of rooms (how many you can sleep) and weeks of rental. I can only tell you what I have seen when we pull rental history reports on homes in phase II. Your realtor can get rental histories for you. You might be able to speak with the manager for watercolor vacation rentals and they can get the information for you as well. I think I gave you the BEST possible scenario year. IMO your expenses would only go up. I have no opinion for you either way if its good and/or bad. Only you can decide if those numbers work for you. I don't think you should count on renting it 100% yourself. The management company wouldn't really be doing its job, and they want the 25%, I'm sure. You could set a marketing/sales goal for yourself to rent VRBO a certain number of weeks and actively pursue that. Bottom line, for my husband and myself, we look at the scenario of "What if we never rent?". How does that look for us? If we can stomach it, then the renting is gravy, and MAYBE even fun. You get to offer couples and families long lasting memories. You might even develop a friendship or two and get repeat renters. :dunno: It sounds like you may have already found something????
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
Your purchase numbers are close, actually 500k.....but for 12k a year out of pocket and to have 32 weeks left over to rent to very aggressively or use for 12k....I cant figure out why is that so terrible....the numbers get better if you rent the condo 100% yourself on VRBO and pay a management company 10% all the time....which I know are out there. It looks like the condo could even make money with several weeks to boot........

Unlikely to happen scenario? You tell me.

Most folks I know that rent on VRBO only get list price about 25% of the time. These days, everyone is looking for a deal and most owners are negotiating to get the rentals.
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
Your purchase numbers are close, actually 500k.....but for 12k a year out of pocket and to have 32 weeks left over to rent to very aggressively or use for 12k....I cant figure out why is that so terrible....the numbers get better if you rent the condo 100% yourself on VRBO and pay a management company 10% all the time....which I know are out there. It looks like the condo could even make money with several weeks to boot........

Unlikely to happen scenario? You tell me.

Not terrible if you can afford it, you don't mind prices on the place you just bought continuing to fall and you really, really want a second home.

Just know that once you buy a condo, getting rid of it will be very, very difficult.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Your purchase numbers are close, actually 500k.....but for 12k a year out of pocket and to have 32 weeks left over to rent to very aggressively or use for 12k....I cant figure out why is that so terrible....the numbers get better if you rent the condo 100% yourself on VRBO and pay a management company 10% all the time....which I know are out there. It looks like the condo could even make money with several weeks to boot........

Unlikely to happen scenario? You tell me.

Clearly this is a case of "My mind is made up don't confuse me with the facts."

I recommend you go on, give it a shot, and report back about your success.

Oh,...and to save you the time--all Realtors you contact will tell you "Now is a great time to buy" <same as 2004-2008>.

BTW, my ex's 2nd cousin with 5 kids and 3 dogs will be looking forward to taking advantage of those "aggressive" price drops.
 
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SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Not terrible if you can afford it, you don't mind prices on the place you just bought continuing to fall and you really, really want a second home.

Just know that once you buy a condo, getting rid of it will be very, very difficult.

It's terrible if calculations are based on stale data from a time when everyone in the US was employed; credit was falling like mana from heaven; homes were ATM machines that magically produced money for vacations, cars, and flat screen TVs; inflation was non-existent, baby boomer stock portfolios were soaring in value; and unicorns were munching on jellybeans and pooping rainbows.

.
 
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Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
melscuba, dont forget to include property taxes on that and hazard insurance. For your example, you could easily throw in $4,000 in property taxes. I guess the condo HOA covers the building's hazard and flood insurance, so you would likely be insuring only the contents.
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
melscuba, dont forget to include property taxes on that and hazard insurance. For your example, you could easily throw in $4,000 in property taxes. I guess the condo HOA covers the building's hazard and flood insurance, so you would likely be insuring only the contents.


Doesn't HOA cover taxes too on condos?
 
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