I want to start investing in vacation beach front condos, good idea bad idea
I am not an expert on this market, but we would need more information.
What area, whats your strategy, how do you want to structure the deal, have you looked at comps?
Can the supply of more condos easily be increased in the local market? What are the restrictions? Is it in a flood plain (additional insurance costs)? etc.
Anything "can" be (not necessarily "is") a good deal when you buy it right. The question you have to answer is what do you plan to do with the condos...buy/hold, fix/flip, wholesale, L/O, etc?
form a 6 person group of newby friends. Start at the bottom I know it takes money to earn money . Get enough for a down payment 1 bedroom 1 bath condos preferably in the same condominium 1 st on buy hold pay off get a loan for 2nd condo have two incomes of rent to pay off 2nd condo buy a third 3 rent incomes to pay off the third condo so on and so forth till we hit 6 payed for condors then we all own one and at 6 the numbers will double paying cash for the investment never taking any money out of the investments building wealth and retiring in ten years from my 9-5 and living the good life and doing something I enjoy doing when I'm 41 - 50 years old and retired I have been doing my home work my reading my studies I'm trying to learn everything I can about the business and be successful thanks for responding to my first post on bigger pockets
@Derrick O. You might want to do some research into what it takes to run a successful vacation condo rental business and what that looks like. That way you can make a better decision on whether or not it's a fit for you.
There was a BP Podcast episode on this exact subject, check it out here: BP Podcast 057: An Introduction to Investing in Vacation Rental Properties with Matt Landau
Mehran Kamari I fill where u r coming from I have listened to the podcast 057 and every thing that goes into investing in a beach front condo that they said where positive. It is a crazy investment and the return is ridiculous compared to owning single family homes long term renters , the only negative is expensive insurance and if u choose to have a third party marketer and HOA fees might go up thank u for your comment on my first post on bigger pockets
any other suggestions or info from anyone would be great
Thanks Derrick O
Originally posted by @Derrick O.:
@Mehran Kamari I fill where u r coming from I have listened to the podcast 057 and every thing that goes into investing in a beach front condo that they said where positive. It is a crazy investment and the return is ridiculous compared to owning single family homes long term renters , the only negative is expensive insurance and if u choose to have a third party marketer and HOA fees might go up thank u for your comment on my first post on bigger pockets
beach front condos
Condos in and of themselves have unique advantages and disadvantages that you'll have to research. For example, one disadvantage is that in certain exit strategies, it's harder to "add value" to condos.
I have entry and exit strategy that will work
A lot depends on which beachfront market you are targeting.
@AL Wilson Panama City Beach Fl.
We have owned a number of units in PCB. Do you have a particular complex you are targeting? The market there is pretty frothy right now, so it has become more difficult to find bargains on the beach.
@Derrick O. - what price point are you looking at and are you open to other areas west of PCB? I do a lot of direct mail marketing in the areas to the west of PCB (Santa Rosa Beach to Fort Walton Beach) and run across a ton of stuff that would be great vacation rentals.
Feel free to give me a shout if you are interested!
@Al Wilson Emerald Beach and Tide Water , an older one I think the name is the continental has one on the maker right now 1b 1b that has been remodeled and never rented out
@James Hogan @Travis Hamilton @Al Wilson yes my particular location is Emerald Beach Resort in Panama City Beach. I have stayed there for the past 4 years renting off VRBO and it is great. Some 1b 1b for sale or foreclosure I have read that lights garbage water are included in the HOA fees and cable internet phone u pay for. Owners in this resort have gave different amounts they pay for the same type of unit , Like one owner told me 1b1b they pay $1,700 quarterly one has said $2,200 quarterly that's a big difference . Havnt figured that one out yet . still studying the market and the numbers to find the right one at the right price I have seen one REO sale for $148k and is furnished now and currently on the market for $180k if it was the right time I would have went for that one, put my 20k in it and maid it a rental. My plan is to buy and hold keep my money invested still working my 9-5 using my investments to buy more properties
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