Dealbreaker? Ocean views with power lines

Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes

Hi all,

Are power lines a deal breaker? Under contract on what appears to be a solid deal…ocean view 2/2 home over a 1/1 apt that is already occupied by a great tenant. The rent from the apartment will pay 60% of the mortgage and we plan to Airbnb the main house when not in town.

One catch is that most of the ocean views also include power lines that are located across the street. The house Is priced a bit below market so the numbers work for us, but curious what you think in terms of resale and STR potential given the lines messing up the views a bit. Has anyone purchased a similar property? Would this be a deal breaker for you if everything else about a property was on point?

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Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

It is a deal breaker for sure. How much of one is the question. I think you'll either lose or annoy about 75% of your guests...but that may be just me...?

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Marshall Leipprandt
Real Estate Agent · Miramar Beach, FL · Member since 2016 · 285 posts · 245 votes
4y
@Ericka G. I don't think it is a deal breaker but you will also have to accept the fact that you may have a percentage of STR prospective guests who don't book because of the sight line - or the property may command a lower nightly rate as a result. As long as the property is squared away otherwise and you disclose the power lines in your listing, I will bet a lot of guests will look past it. Personally, I would run your Airbnb gross revenues on the conservative side just to be safe. At the end of the day, if the numbers work out, I wouldn't be too concerned about the lines.
Any chance at all the lines could eventually be lowered or run underground?
1 Reply
Ericka G.
OP
Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
4y
Quote from @Marshall Leipprandt:

@Ericka G. I don't think it is a deal breaker but you will also have to accept the fact that you may have a percentage of STR prospective guests who don't book because of the sight line - or the property may command a lower nightly rate as a result. As long as the property is squared away otherwise and you disclose the power lines in your listing, I will bet a lot of guests will look past it. Personally, I would run your Airbnb gross revenues on the conservative side just to be safe. At the end of the day, if the numbers work out, I wouldn't be too concerned about the lines.
Any chance at all the lines could eventually be lowered or run underground?
Good point about being more conservative with the nightly rates, assuming this might command lower rates. I will ask locally if they can be moved at some point. I doubt it but doesn’t hurt to check what the process might be.
Any idea how much I’d need to knock off for the less than perfect sight lines? 20%?
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
It is a deal breaker for sure. How much of one is the question. I think you'll either lose or annoy about 75% of your guests...but that may be just me...?
3 Reply
Jon Martin
Member since 2022 · 1k+ posts · 1k+ votes
4y
Not ideal, but I wouldn't say it's a dealbreaker for guests if it's in a popular area and has everything else going for it. Plenty of California beach neighborhoods have horrendous power lines in the view line and that doesn't seem to slow it down. Those power lines are actually not too bad- I've got absolute ratnests in my beach neighborhood and the rates are still outrageous.
1 Reply
Ericka G.
OP
Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
4y
Quote from @Bruce Woodruff:

It is a deal breaker for sure. How much of one is the question. I think you'll either lose or annoy about 75% of your guests...but that may be just me...?
75% seems high, but who knows. It gives me pause but my husband says it doesn’t bother me at all. I may need to figure out a way to do a quick poll to try to get a more quantitative read. The house is priced well below others in the area, I’m guessing the power lines in the view are contributing to that
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Ericka G.
OP
Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
4y
Quote from @Jon Martin:

Not ideal, but I wouldn't say it's a dealbreaker for guests if it's in a popular area and has everything else going for it. Plenty of California beach neighborhoods have horrendous power lines in the view line and that doesn't seem to slow it down. Those power lines are actually not too bad- I've got absolute ratnests in my beach neighborhood and the rates are still outrageous.
Good to know, thanks for the input. Can u share some of the beach zip codes you are referencing and I will take a look on Airbnb, etc. that will help me get an idea of the potential impact on rates.
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Christopher McCarthy
Contractor · Virginia Beach, VA · Member since 2021 · 7 posts · 5 votes
4y
@Ericka G.
Personally I would say no, it doesn't bother me at all.
If your planning on using it as an Airbnb, most people are only going to see pictures before renting it. So try to take pictures that minimize the power lines as much as possible.
Another idea if your active on Instagram: Take some pictures and create a pole for your followers, whether they would rent the property or not. Don't say anything about the powerlines, just have pictures that show they they are there without focusing on them. See what kind of feedback you get.
Lastly, check with the city. See if they plans of to move the powerlines underground within the next few years. It would suck to skip on the deal because of the lines, only to find out that they are planning on putting them underground this summer!
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
4y
I doubt it would bother most people. Those are regular power lines and lots of places have the electrical lines runny above ground. Now if they were the big transformers, that's another story. The nice thing is that even though it is on the non-ocean side of the road, the houses on the other side of the road are lower down and dont' block much of the view.
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Mackenzie Grate
Real Estate Agent · Ulster County, NY · Member since 2020 · 201 posts · 173 votes
4y
Definitely not a deal breaker. People love ocean views no matter what. Is it a bummer, yes, but I would just make sure the listing is accurate and you include them in the pictures so there is no feeling of being misled when people book. And I think your idea of asking the town what the process is to get them relocated is a great one. I personally would still buy it but just make the listing super transparent.
Congrats on finding such a great deal!
1 Reply
Reed Vennel
Investor · Phoenixville, PA · Member since 2019 · 30 posts · 26 votes
4y
See if you can find out who owns the powerline and pay to bury it yourself! Found an article that said it cost FEMA $11k per mile. $5k to bury the 1/4 mile surrounding your new house could be an amazing ROI project.

"The Federal Emergency Management Agency (FEMA) to bury a 5.5-mile segment of line in Beadle County just west of Huron. The cost of the burying the line was approximately $11,570 per mile"
https://www.fema.gov/case-stud...

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Jon Martin
Member since 2022 · 1k+ posts · 1k+ votes
4y
Quote from @Reed Vennel:

See if you can find out who owns the powerline and pay to bury it yourself! Found an article that said it cost FEMA $11k per mile. $5k to bury the 1/4 mile surrounding your new house could be an amazing ROI project.

"The Federal Emergency Management Agency (FEMA) to bury a 5.5-mile segment of line in Beadle County just west of Huron. The cost of the burying the line was approximately $11,570 per mile"
https://www.fema.gov/case-stud...

That sounds inexpensive and will greatly depend on what they need to dig up. In Manhattan Beach (LA), homeowners were assessed ~$25-30K to their property taxes amortized over 25 years. Ouch!
Looks like PR or Virgin Islands and maybe just a simple dig and drop, so probably less expensive and less red tape than California. Absolutely worth it.
1 Reply
Jon Martin
Member since 2022 · 1k+ posts · 1k+ votes
4y
Quote from @Ericka G.:

Quote from @Jon Martin:

Not ideal, but I wouldn't say it's a dealbreaker for guests if it's in a popular area and has everything else going for it. Plenty of California beach neighborhoods have horrendous power lines in the view line and that doesn't seem to slow it down. Those power lines are actually not too bad- I've got absolute ratnests in my beach neighborhood and the rates are still outrageous.
Good to know, thanks for the input. Can u share some of the beach zip codes you are referencing and I will take a look on Airbnb, etc. that will help me get an idea of the potential impact on rates.

Zip code is 93442, north end.
Yeah, it’s hideous, but at the end of day I still thoroughly enjoy drinking a beer (and morning coffee) while enjoying this view!

Can’t think of other zip codes off the top of my head but this is not unusual. This is one of the less expensive beach destinations in the southern half of California and STRs in this neighborhood still average $60-80K+/year.
1 Reply
Greg R.
Investor · Dallas, TX · Member since 2016 · 887 posts · 1k+ votes
4y
In my mind not a deal breaker. Most people would kill for a peek-a-boo ocean view. Obviously the power lines are not ideal, but I don't think that's enough to kill a good deal IMO. However, the price should reflect an appropriate discount for the power lines. What are comps for nearby properties without the power lines. The price you're paying here should be about 10-15% less IMO. I personally don't think most STR renters will care, but that's just my opinion.
2 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
Quote from @Ericka G.:

Yeah, probably 75% is too high....but most people I know wouldn't like their view interrupted by the ugly things if they were paying top dollar for the views. Just something to consider....
1 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Ericka G.:

Hi all,
Are power lines a deal breaker? Under contract on what appears to be a solid deal…ocean view 2/2 home over a 1/1 apt that is already occupied by a great tenant. The rent from the apartment will pay 60% of the mortgage and we plan to Airbnb the main house when not in town.

One catch is that most of the ocean views also include power lines that are located across the street. The house Is priced a bit below market so the numbers work for us, but curious what you think in terms of resale and STR potential given the lines messing up the views a bit. Has anyone purchased a similar property? Would this be a deal breaker for you if everything else about a property was on point?

I do not think it’s a dealbreaker. I think that in your Airbnb if you post this photo of the ocean so that they can clearly see there is power lines then there should be no miscommunication about that with guests staying.
2 Reply
Ericka G.
OP
Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
4y
Quote from @Reed Vennel:

See if you can find out who owns the powerline and pay to bury it yourself! Found an article that said it cost FEMA $11k per mile. $5k to bury the 1/4 mile surrounding your new house could be an amazing ROI project.

"The Federal Emergency Management Agency (FEMA) to bury a 5.5-mile segment of line in Beadle County just west of Huron. The cost of the burying the line was approximately $11,570 per mile"
https://www.fema.gov/case-stud...

Great tip!

0 Reply
Ericka G.
OP
Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
4y
Quote from @Jon Martin:

Quote from @Reed Vennel:

See if you can find out who owns the powerline and pay to bury it yourself! Found an article that said it cost FEMA $11k per mile. $5k to bury the 1/4 mile surrounding your new house could be an amazing ROI project.

"The Federal Emergency Management Agency (FEMA) to bury a 5.5-mile segment of line in Beadle County just west of Huron. The cost of the burying the line was approximately $11,570 per mile"
https://www.fema.gov/case-stud...

That sounds inexpensive and will greatly depend on what they need to dig up. In Manhattan Beach (LA), homeowners were assessed ~$25-30K to their property taxes amortized over 25 years. Ouch!
Looks like PR or Virgin Islands and maybe just a simple dig and drop, so probably less expensive and less red tape than California. Absolutely worth it.
Yep, this is VI…will definitely check as it could be a good value add. I didn’t realize we could just bury a quarter mile possibly.
1 Reply
Ericka G.
OP
Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
4y
Quote from @Jon Martin:

Quote from @Ericka G.:

Quote from @Jon Martin:

Not ideal, but I wouldn't say it's a dealbreaker for guests if it's in a popular area and has everything else going for it. Plenty of California beach neighborhoods have horrendous power lines in the view line and that doesn't seem to slow it down. Those power lines are actually not too bad- I've got absolute ratnests in my beach neighborhood and the rates are still outrageous.
Good to know, thanks for the input. Can u share some of the beach zip codes you are referencing and I will take a look on Airbnb, etc. that will help me get an idea of the potential impact on rates.

Zip code is 93442, north end.
Yeah, it’s hideous, but at the end of day I still thoroughly enjoy drinking a beer (and morning coffee) while enjoying this view!

Can’t think of other zip codes off the top of my head but this is not unusual. This is one of the less expensive beach destinations in the southern half of California and STRs in this neighborhood still average $60-80K+/year.
Wow that is definitely hurting the view but good to know that Airbnb can still work even with obscured views
1 Reply
Dustin P.
Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes
4y
Are there any comparable properties that also have those powerlines in the way that you can use to determine how big of a deal it is?
1 Reply
Ericka G.
OP
Investor · Atlanta, GA · Member since 2015 · 366 posts · 283 votes
4y
Quote from @Dustin P.:

Are there any comparable properties that also have those powerlines in the way that you can use to determine how big of a deal it is?
Good point. None that I’ve seen/noticed in the comps but I will check again…
0 Reply
Adam Lacey
Investor · Castle Rock, CO · Member since 2018 · 297 posts · 159 votes
4y
@Ericka G. Still a great view!! I dont think would be a deal breaker for me. Especially if its a personal residence and not a pure investment property.
1 Reply
Jeff Wagner
Real Estate Broker · St. Thomas, USVI · Member since 2019 · 33 posts · 26 votes
4y
Quote from @Ericka G.:

Hi all,
Are power lines a deal breaker? Under contract on what appears to be a solid deal…ocean view 2/2 home over a 1/1 apt that is already occupied by a great tenant. The rent from the apartment will pay 60% of the mortgage and we plan to Airbnb the main house when not in town.

One catch is that most of the ocean views also include power lines that are located across the street. The house Is priced a bit below market so the numbers work for us, but curious what you think in terms of resale and STR potential given the lines messing up the views a bit. Has anyone purchased a similar property? Would this be a deal breaker for you if everything else about a property was on point?

This looks like east end STX. Power lines in sight line is definitely a consideration in the VI and certainly common. If the poles are wood, there is a chance they will be buried at some point. If they are composite, that means they are probably post-Maria and unlikely to be buried. Try calling WAPA and see if anyone can point you in the right direction. I have known of private parties burying lines in front of their properties, so it is possible.
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