Sandestin, STR Condo, is a 1 bedroom worth it?
Member since 2023 · 12 posts · 38 votes
Hi. What thoughts/experience do you have with studio/1 bedroom in Destin. Newer investor and looking for an entry level STR as my first rental. I am looking at a studio/1 bedroom in the Sandestin area. Based on history it seems like the studios I've seen cash flow really well but it seems like the property may sit for awhile when trying to sell in 10 years. Specifically looking on the bayside communities of Grand Sandestin.
@Kimberly Bunch studios and one bedrooms actually do better in rent per sq ft than larger units and offer better returns in my experience. I have two studios and a one bedroom townhouse on Okaloosa Island as well as a 3/3 beachfront condo. In absolute terms the large units bring in more, but as far as % return, my experience has been that small units do better and are also more versatile when it comes to the off season, when people are not travelling in large family groups. So studios and one bedrooms can offer a more steady occupancy and rental income.
Sandestin if very popular and also well known. In a way buying there allows you to buy the "brand". People look for Sandestin by name. HOA fees are pretty high, but these days they are actually very comparable to other complexes. With insurance so high for single family homes and REALLY difficult to get for STR houses, HOA fees don't seem so scary any more, lol. Also, the amenities are a big appeal to guests.
Used to be that Sandestin was difficult to self-manage or to have other mgmt company outside of the in-house Sandestin management. That is no longer the case. Yes, there are some small discounts that guests get on renting bikes or carts if the owner uses the in-house management, but that does not seem to impact whether or not guests book with you. So you can self-manage or use whichever company you choose just fine.
I would suggest you look into Luau on the beach/south side of the Sandestin resort. It's newer, very nice and there are great studios there. Depending on your budget, the lock-out units (two bedroom unit that splits into a one bedroom and a studio and can be rented either way) are a great option. You are basically buying two condos and only paying one HOA fee. I currently have a client who is trying to buy one of these units. Amazing views too and walking distance to the beach (super plus).
If you are looking on the Bay side of Sandestin, there are some more cost effective options there. The studios/one bedrooms there also benefit from some conference and conventions traffic in off-season. Gross rent will probably not be as high as on the beach side, but considering the prices (many are in the mid $250K and under $300K with rental projections over $30K). In Sandestin on the Bay side, some of the buildings I like are Bayside Condo (incredible water views of the bay), Bahia and Lasata (studios are bigger here and can do in the high $30K or more).
I've always been a huge fan of small units (you will probably find numerous posts from me about that, lol). I used to not be that big of a fan of Sandestin, but with the shift of prices on the market (many areas being really high and somewhat oversaturated in rentals) and with the flexibility of managing in Sandestin now, I'm spending a lot of time with clients there. I am also considering buying something (studio) there myself. One great thing about Sandestin is that locals go there as well for weekend staycations :-).
Good luck on your property search. If you have any questions about studios/small unit STR or Sandestin and the area around, definitely let me know. I'll be happy to answer. I try to be as objective and straightforward as possible.
Hi. What thoughts/experience do you have with studio/1 bedroom in Destin. Newer investor and looking for an entry level STR as my first rental. I am looking at a studio/1 bedroom in the Sandestin area. Based on history it seems like the studios I've seen cash flow really well but it seems like the property may sit for awhile when trying to sell in 10 years. Specifically looking on the bayside communities of Grand Sandestin.
Sandestin. The golf cart capital of Florida lol. I'm over there at least once per week with the kids but @Avery Carl will know more about the real estate in there.
@Kimberly Bunch studios and one bedrooms actually do better in rent per sq ft than larger units and offer better returns in my experience. I have two studios and a one bedroom townhouse on Okaloosa Island as well as a 3/3 beachfront condo. In absolute terms the large units bring in more, but as far as % return, my experience has been that small units do better and are also more versatile when it comes to the off season, when people are not travelling in large family groups. So studios and one bedrooms can offer a more steady occupancy and rental income.
Sandestin if very popular and also well known. In a way buying there allows you to buy the "brand". People look for Sandestin by name. HOA fees are pretty high, but these days they are actually very comparable to other complexes. With insurance so high for single family homes and REALLY difficult to get for STR houses, HOA fees don't seem so scary any more, lol. Also, the amenities are a big appeal to guests.
Used to be that Sandestin was difficult to self-manage or to have other mgmt company outside of the in-house Sandestin management. That is no longer the case. Yes, there are some small discounts that guests get on renting bikes or carts if the owner uses the in-house management, but that does not seem to impact whether or not guests book with you. So you can self-manage or use whichever company you choose just fine.
I would suggest you look into Luau on the beach/south side of the Sandestin resort. It's newer, very nice and there are great studios there. Depending on your budget, the lock-out units (two bedroom unit that splits into a one bedroom and a studio and can be rented either way) are a great option. You are basically buying two condos and only paying one HOA fee. I currently have a client who is trying to buy one of these units. Amazing views too and walking distance to the beach (super plus).
If you are looking on the Bay side of Sandestin, there are some more cost effective options there. The studios/one bedrooms there also benefit from some conference and conventions traffic in off-season. Gross rent will probably not be as high as on the beach side, but considering the prices (many are in the mid $250K and under $300K with rental projections over $30K). In Sandestin on the Bay side, some of the buildings I like are Bayside Condo (incredible water views of the bay), Bahia and Lasata (studios are bigger here and can do in the high $30K or more).
I've always been a huge fan of small units (you will probably find numerous posts from me about that, lol). I used to not be that big of a fan of Sandestin, but with the shift of prices on the market (many areas being really high and somewhat oversaturated in rentals) and with the flexibility of managing in Sandestin now, I'm spending a lot of time with clients there. I am also considering buying something (studio) there myself. One great thing about Sandestin is that locals go there as well for weekend staycations :-).
Good luck on your property search. If you have any questions about studios/small unit STR or Sandestin and the area around, definitely let me know. I'll be happy to answer. I try to be as objective and straightforward as possible.
@Kimberly Bunch studios and one bedrooms actually do better in rent per sq ft than larger units and offer better returns in my experience. I have two studios and a one bedroom townhouse on Okaloosa Island as well as a 3/3 beachfront condo. In absolute terms the large units bring in more, but as far as % return, my experience has been that small units do better and are also more versatile when it comes to the off season, when people are not travelling in large family groups. So studios and one bedrooms can offer a more steady occupancy and rental income.
Sandestin if very popular and also well known. In a way buying there allows you to buy the "brand". People look for Sandestin by name. HOA fees are pretty high, but these days they are actually very comparable to other complexes. With insurance so high for single family homes and REALLY difficult to get for STR houses, HOA fees don't seem so scary any more, lol. Also, the amenities are a big appeal to guests.
Used to be that Sandestin was difficult to self-manage or to have other mgmt company outside of the in-house Sandestin management. That is no longer the case. Yes, there are some small discounts that guests get on renting bikes or carts if the owner uses the in-house management, but that does not seem to impact whether or not guests book with you. So you can self-manage or use whichever company you choose just fine.
I would suggest you look into Luau on the beach/south side of the Sandestin resort. It's newer, very nice and there are great studios there. Depending on your budget, the lock-out units (two bedroom unit that splits into a one bedroom and a studio and can be rented either way) are a great option. You are basically buying two condos and only paying one HOA fee. I currently have a client who is trying to buy one of these units. Amazing views too and walking distance to the beach (super plus).
If you are looking on the Bay side of Sandestin, there are some more cost effective options there. The studios/one bedrooms there also benefit from some conference and conventions traffic in off-season. Gross rent will probably not be as high as on the beach side, but considering the prices (many are in the mid $250K and under $300K with rental projections over $30K). In Sandestin on the Bay side, some of the buildings I like are Bayside Condo (incredible water views of the bay), Bahia and Lasata (studios are bigger here and can do in the high $30K or more).
I've always been a huge fan of small units (you will probably find numerous posts from me about that, lol). I used to not be that big of a fan of Sandestin, but with the shift of prices on the market (many areas being really high and somewhat oversaturated in rentals) and with the flexibility of managing in Sandestin now, I'm spending a lot of time with clients there. I am also considering buying something (studio) there myself. One great thing about Sandestin is that locals go there as well for weekend staycations :-).
Good luck on your property search. If you have any questions about studios/small unit STR or Sandestin and the area around, definitely let me know. I'll be happy to answer. I try to be as objective and straightforward as possible.
@Villy Ellinger thank you so very much for your time and detailed response. This is incredibly helpful information. I truly appreciate and may be back in touch with more questions. I am in the Atlanta area and if you ever need anything in that area let me know!
Enemy method it!
If it’s going to cash flow well now and it’s in your budget,I say go for it. Buy what you can afford.
We almost purchased a 2/2 condo in Sandestin earlier this year. Our realtor wouldn't even let us look at studios and was very hesitant over 1-bedroom condos. Most people looking to travel to the area want 2+ bedrooms or at least a bedroom and bunks. When I did the "enemy method" I noticed on the OTA that studios always had nearly wide-open calendars and selling them is near impossible! Maybe things have changed in 6+ months, but we found the numbers on studios were pretty tight. Once you started adding bedrooms, the cash flow started flowing in the right direction.
Hi! What makes some of the Sandestin condos tough to cash flow is the HOA fees. Just double check that these are all included when running your analysis. Depending on your budget I would also consider a townhouse that is walking distance to the beach.
We almost purchased a 2/2 condo in Sandestin earlier this year. Our realtor wouldn't even let us look at studios and was very hesitant over 1-bedroom condos. Most people looking to travel to the area want 2+ bedrooms or at least a bedroom and bunks. When I did the "enemy method" I noticed on the OTA that studios always had nearly wide-open calendars and selling them is near impossible! Maybe things have changed in 6+ months, but we found the numbers on studios were pretty tight. Once you started adding bedrooms, the cash flow started flowing in the right direction.
We almost purchased a 2/2 condo in Sandestin earlier this year. Our realtor wouldn't even let us look at studios and was very hesitant over 1-bedroom condos. Most people looking to travel to the area want 2+ bedrooms or at least a bedroom and bunks. When I did the "enemy method" I noticed on the OTA that studios always had nearly wide-open calendars and selling them is near impossible! Maybe things have changed in 6+ months, but we found the numbers on studios were pretty tight. Once you started adding bedrooms, the cash flow started flowing in the right direction.