Sonowbird for free....multi vs condo ?

Question

From Boston, trying to buy a place somewhere in Florida which seems to have a bunch of 10 cap properties

If I buy a 2 or  3 fam I can rent 2/3 and almost cover everything w/25% down, then have an empty place to go to any time...

BUT if I buy a single or a condo I am stuck trying to seasonal rent it during the winter months (that I want to visit) leaving me with less income than the 2/3 full 3 fam that gets year round rent.

The question is has anyone made the seasonal rental work as well as the multi????

Catherine A. · Answer

Hi Mike,

SFH and I use an experienced vacation rental property manager. When you say buy with cash, I assume you mean a standard cash down with financing. Generally it's been break even. Cash flow is challenging but of course that's going to depend a lot on what you paid for it, what rents you can get, how much you block it out for personal use, etc. Depending on the market, a short term/vacation PM for a furnished property will run 25% - 40%. (ouch). I find it best to think of this as a different kind of 'investment'...one where you are investing in your own quality of life and happiness.

Cheers back at ya' and best of luck,

Catherine

Mike S. · Answer

@Catherine A. Great advice! Thank you, are you doing singles or condos?  To me I can't see how it would be possible to cash flow much or even break even with a condo(or singe), and thats assuming your buying w/cash. Are you doing this?

I like having the 3rd vacational rental w/ very attractive rent, this way their extra set of eyes can come in handy. Maybe even have them take care of the yard for a discount rent!

Cheers!

Catherine A. · Answer

Hi Mike,

I have experience with a seasonal...no multi. I think the multi is the way to go. You can even rent the 3rd furnished unit as a vacation rental using a property manager with lower then market rental rates in the off season. That keeps your empty place occupied when you're not around, an extra set of local eyes watching the place and some possible extra income. Vetting your property managers thoroughly and maybe getting a one that specializes in vacation rentals/short term furnished rentals will help.

Also, be sure to check CC and Rs and any HOA requirements and restrictions regarding short term rentals on any properties...especially condos.  Certain cities also have requirements on vacation rentals if you choose that route.

Hope this is helpful. Good luck to you!