Real Estate Broker · Tyler, TX · Member since 2018 · 193 posts · 143 votes
We would like to purchase a 2nd home, Caribbean, Florida, Gulf Shores, North Carolina...you get the drift. What we are hoping is that renting this on Airbnb, Vrbo, etc will pay for the mortgage. Now we know that it's seasonal and that we have to take into consideration that most of our money will be made Spring/Summer...that being said, who is doing this and is it working for you?
The Caribbean can be very lucrative, and less chance of regulations getting in the way. The US is much riskier with so many cities trying to regulate STR's. I have a Bahamian rental (not technically the Caribbean) that is grossing six figures this year and we are still using it for about a month. Paid $600K for it and put in about $100K. Property taxes are $1500 a year and that includes trash pickup three times a week. I self insure it and water is collected in cisterns, so no water or insurance bill. Airbnb gives one million of insurance while the guest are there. Electricity is about $300 per month. I am pretty happy with how it has worked out. Every month gets rented except September.
The Bahamian dollar is pegged to the US dollar, they speak english, and it is a 35 minute flight from Miami or Ft Lauderdale. It is not a litigious country and seems to be landlord/investor friendly. Show me a place in the States that can provide similar results....
Realtor · Orange Beach AL · Member since 2018 · 150 posts · 125 votes
7y
@John Blackrock
Plenty of opportunities in Orange Beach & Gulf Shores in that price range for STR! I will send you a colleague request so that I can send you some options!
Plenty of opportunities in Orange Beach & Gulf Shores in that price range for STR! I will send you a colleague request so that I can send you some options!
I just visited Orange beach recently and drove through Gulf Shores! Looking forward to seeing what you have.
Real Estate Agent · Tampa, FL · Member since 2018 · 464 posts · 452 votes
7y
@John Blackrock - My current STR was purchased at $565K; here's my AirBnB link (https://www.airbnb.com/rooms/31150587). We currently have over $55K booked/paid through Aug 10 of this year, a preponderance of which is from AirBnB. After all expenses (including debt service) and CAP ex, we break even between $50K. Our goal is $80K for the year, which we probably won't hit. We're more on track to hit around $70K for the year, which would be about $20K annual cash flow.
The second property I am purchasing is a smaller condo on Okaloosa Island near Fort Walton Beach. We're currently under contract for $170K, and my goal is to gross around $30K in that property.
If you ever wanted to chat more about the area or are looking to purchase something, I'd be more than willing to help!
Real Estate Broker · Montgomery & Orange Beach AL · Member since 2018 · 9 posts · 11 votes
7y
@John Blackrock The Orange Beach and Gulf Shores market is great! Baldwin County is the fastest growing market in the state. The price per square foot is better and the property taxes are much lower. We have helped several investors reach their goals in the area. I will send you a colleague request so that I can show some of the properties that have been purchased as vacation rentals
Rental Property Investor · Mobile, AL · Member since 2018 · 54 posts · 19 votes
7y
@Angie Shires
No problem. Be aware of where you purchase and make sure its Gulf Shores. Orange Beach, neighboring town, banned STRs that are less than 14 days. It might be just in residential areas, but I’m not 100% positive. Gulf Shores was talking about doing the same but I think they are getting big tax dollars from AirBnB.
Realtor · Orange Beach AL · Member since 2018 · 150 posts · 125 votes
7y
@Joseph Gambino
The STR restrictions for Orange Beach & Gulf Shores are just in the residential zones. The beachfront areas and certain PUDS are exempt plus some existing rental properties in restricted zones have been grandfathered if the new owner makes sure to apply for the business license. :)
Real Estate Broker · East TN Loudon/Lenoir City/Tellico Village · Member since 2014 · 363 posts · 222 votes
7y
@Cheryl Vargas
My experience with Co-hosts is usually 10% or maybe 15,% if they also organize maintenance repairs, etc.
The right PM will have ability to share with you reports and data to include total nights rented, and other reports plus you should have access to view communications if you want. Be sure to ask about transparency.
I heard recently with some companies they have restrictions about how many days an owner can occupy their own property.
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Angie Shires
I am doing it in the rural, small city of Cortland New York. If I can do it here in this pass by city then anybody can do it anywhere.
I find the key to a successful Airbnb is communication and customer service. Because everybody has the same amenities but not everybody has the same level of service. The better your service, the higher up the list you go.
Specialist · St Petersburg, FL · Member since 2017 · 62 posts · 34 votes
7y
A lot of places in Florida are great year round. Snow bird season is busy and they typically want to stay for the week to a month. Summer time your looking at busy weekends.
I’ve heard spots like Panama Beach and Daytona die off bad in the off season.
I live in Clearwater beach fl and it stays pretty constant year round. If your looking anywhere in Tampa let me know and I’ll see if I can help.
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Travis Stern
I own a duplex and I rent out one side. My long term rentals go for 850 for a 2 bedroom. I use that as my baseline if I do good or bad that month. Most months I get past my baseline.
They can really vary depending on the market. I have seen everywhere from 10-25% of the rental gross rents. As with most things, the more streamlined and professional, the more it is likely to cost.
Some companies will restrict the days that landlords could use their properties. I don’t think I can accept that. You need to confirm with it.
Yes, some PM contracts will state that the rental needs to be available to them for X number of weeks per year. That number can range from 6-14 weeks on the gulf coast. If you want your personal vacation home to be available whenever you want it, then purchase with that intent. If you want your vacation home to pay for itself like the OP ask, then allow it to be rented as much as possible. If I wanted my beach condo to make the greatest return, then it would not be wise of me to owner occupy it during the summer. I usually go the beach during the off seasons bookending summer, when there is less people and the weather is still great. I don't want to be at the overcrowded beaches for the 4th of July which is our highest grossing month.