So this would be my first property. The apartments are selling for 54K to 90K I think the higher ones are facing the ocean. The HOA fees are $700 a month and I wouldn't be living at this property. Don't judge but I live with my folks and this apartment is only 3.5 miles away. Supposedly this place is okay with it being an Air BNB rental. I make about 84K a year at my job and only work about 9 days a month albeit for 24 hour periods.
I will be visiting the complex to do a walk through and was wondering what are so good questions to ask? Does anyone think this would be a good investment opportunity? It’s somewhere in South Florida btw.
So what I would do is see if the condo can be used as an AirBnB. Then I would scout competition, look at their prices, figure out what the yearly occupancy rate is there so you can properly forecast potential profits, and if all checks out, go for it!
Specialist · Carolina Beach, NC · Member since 2016 · 390 posts · 496 votes
7y
Some things to consider:
Will the HOA allow it right now?
Will the HOA disallow it in the near future? HOA's are notorious for changing the game on you at their whim, whether it be increasing HOA fees or changing owner occupancy rules. If I were to purchase in an HOA, I would try to get on the board as soon as possible to protect my interest.
Does the municipality allow short term rentals? Google the "city name, + short term rental ordinance" to see if there are any laws pending or on the books.
Call the city zoning and planning commission and ask about any short term rental ordinances.
If it's all good on the above, go to AirDNA.co and find out their prediction for what kind of rent the address could demand.
A studio apartment presents pretty thin margins for a short term rental if you ask me, but perhaps there is strong demand there.