200K to invest - How's Saint Augustine Florida?

Question

Hey all! I'm contemplating buying an ocean front condo in the Saint Augustine florida area. I currently live in New York. The property would be a vacation rental that I could use with my family (maybe spend 4 weeks a year down there). I would like to rent it out the time that I'm not there. The condo association will rent the properties for me and the weekly rents can be pretty high. I've stayed at the place before and It's really nice with a few pools and right on the ocean. How can I get an idea of vacancy rates for the units? Also any ideas as to how much they will charge for renting it out ? I assume it's not part of my maintenance fee. Is this a good area to invest in real estate? I currently own a 3 family building in Brooklyn New York (I also live in it). It's been a great financial decision and I've gotten so lucky with my tenants. I have about 200K to invest so was thinking about buying more than property down there. The one would be a second home/rental property so I would want it to be very nice.

Thank you all!

Brooks Conkle · Answer

Great Answers from these guys!
A few thoughts:
1) It's super tempting to buy vacation place far away and rent out when you're not using it, but not always the smartest.
2) Great idea about keep investing in your own backyard and then use the profits to vacation.
3) Can't stress enough the importance of REIAs.

Dave M. · Answer

Why not repeat what you have already done since that has worked? Find another 3-unit in your neighborhood, move your family into it and keep the current building as a rental. As owner occupied, you'll get better financing.

Chris Moore · Answer

Thank you both for the advice. I think you are right. I'm better off enjoying my vacation and attempting to find good properties to invest in.  ALthough I've technically been a real estate investor for the past five years I have allot to learn. I plan on going to the Real Estate Investment clubs in NYC.  Are there any websites you can recommend for distressed or foreclosure properties? I wouldn't be adverse to maybe partnering up with someone that new more then me either.

It seems that buying investment properties closer to where you live increases your likelihood for success.

Account Closed · Answer

Ugh, my gut says rent when you want to enjoy it and keep the 200k.     With that said talk to the management company (more than likely taking 25% or so) and ask them for rent rolls on something similar.

I bought a vacation rental in suwannee cove at the mouth of the suwannee river, gorgeous place in the middle of nowhere.    Height of the market went for 350k, I paid 45k.    If you look at the rental history of most of the units they barely receive 10k a year before the local realtor gets her cut.  HOA payments/taxes/mandatory water bill etc runs about 12k a year.   Do the math.

People justify owning them since they just want it, the rental aspect is to offset some of the bleed.    It by no means makes money though so don't call it an investment.

Nobody has the right to tell you not to spend money on what you enjoy, but as an investment stick to something that makes sense.    If the rental rolls of other units say it makes a good cap rate I'd be HIGHLY surprised.

Dave M. · Answer

Maybe give a little more info on the opportunity and you will get better response.

If you search, you may find some other posts on VERY GENERAL occupancy rates, management fees, maintenance expenses, etc. for resort properties.

Resort properties are quite different from residential. So it may be a better investment to just pay for 4 weeks of vacation wherever you like each year and buy real estate where you get the best return.

Chris Moore · Answer

No opinions?