Condos vs Single Family attached/detached for STRs

Condos vs Single Family attached/detached for STRs

Realtor · OK · Member since 2020 · 138 posts · 165 votes

When making a decision on what type of property to invest in for short term rentals in beach front locations like Destin/Panama City Beach, do you think single family attached/detached are better than condos? 

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
4y

A house will absolutely outperform a Condo. 

More room, usually easier on people with pets, more sleeping areas, privacy, easier parking, can be a few steps to the beach, etc.

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  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    4y

    Hey @Kevin Pillow I'm not invested in that area so I can't speak to too much detail but my first instinct is to say "yes" simply because if you are buying a condo, there is the variable of the condo association, and even if they currently allow STR's, it does not guarantee that they will continue to allow it. But on the other hand I'd say the benefit of a condo is that some maintenance is handled already through your condo fees. I realize I didn't really give you a straight answer but hopefully it at least sparks some thoughts for you.

    Good luck!

  • Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    @Kevin Pillow

    Single family. More space, privacy and more control. Don't buy in an HOA, one day they can change the rules and not allow STRs in their community. That includes single family houses in a HOA community too.

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y

    A house will absolutely outperform a Condo. 

    More room, usually easier on people with pets, more sleeping areas, privacy, easier parking, can be a few steps to the beach, etc.

  • Realtor · OK · Member since 2020 · 138 posts · 165 votes
    4y

    @John Underwood I think those are all huge benefits plus it's a bit easier on financing with 2nd home loans since we don't have to worry about warrantable guidelines. The major hurdle is finding a home in STR Zoned area within a price range most first time investors can afford. Then the condo route becomes more feasible.

  • Member since 2022 · 115 posts · 49 votes
    4y

    SFH for sure! your margins get smaller and smaller with condos plus you have to deal with owner association, neighbors around, etc.

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