Recently I have been evaluating two short-term rental property options, and am struggling to decide which one is better. Both of them have 6B/6B and could host ~20 people.
Option 1:
* Less than 10 mile to beach
* 2 acre total which is buildable
* More mild temperature, 15C - 25C year around
Option 2:
* Inline, 25 mile to beach, hilltop mountain view
* 10 acre total, with 4-5 acre buildable
* Hotter, during summer it gets to 35C
House condition of the two is similar. I am a bit struggled on which one is a better option. A couple of thoughts questions:
(1) Is closer to beach a major draw for groups like 15 - 20 people? or given the group size, it doesn't matter much as they will likely stay at the property anyway
(2) I heard from people mentioning that higher temperature like 35C will be more appealing given it is better for the pool usage. Is that the case?
(3) How big of a difference for privacy for property of 2 acre size vs 10 acre?
feel to me that most people feel the distance to the beach is important. I understand why it is crucial for smaller 3B/2B properties, but I wonder how important it is for properties that are above 5000SF with 6B/6B?
One argument could be made that the house itself is the attraction rather than the beach, and if the targeted travelers are the ones who will spend most of the time in the house and maybe go to beach once over the stay, 10 mile vs 25 mile doesn't change the story. Moreover, option 2 will offer more privacy given the distance to the neighbor, etc.
well, my property is across the street from Panama city beach. And there are plenty of houses on the beach and across the street. The houses on the beach rent first, the further you go away from the beach the less rented they become unless they are just rock bottom low. but i agree with @Andrew Steffens that 25 miles from the beach, i would not consider a beach property. and 10 miles from the beach, unless its some place that doesnt have many beach houses would still not be even the 3rd-4th choice by renters.
this. location location. and also, at 10 miles to the beach you get going to get the secondary market guests, as people want beachfront or walking distance.
Here in FL there is the beach (walkable to water) and then there is inland (1-5 miles) from the beach. Even 10 miles is hard. 25 Miles from beach with little facilities around I do not think would rent well.
feel to me that most people feel the distance to the beach is important. I understand why it is crucial for smaller 3B/2B properties, but I wonder how important it is for properties that are above 5000SF with 6B/6B?
One argument could be made that the house itself is the attraction rather than the beach, and if the targeted travelers are the ones who will spend most of the time in the house and maybe go to beach once over the stay, 10 mile vs 25 mile doesn't change the story. Moreover, option 2 will offer more privacy given the distance to the neighbor, etc.
It is just as important @Tom Tao. Look at the rates charged by a beach front hotel vs a motel that is 10 miles away.
Personally I wouldn't go for either depending on the cost etc.
Plus you need to check and make sure it is legal where you are looking. There are a lot of restrictions in that area (San Diego) plus the new regs that are coming online regarding cancellations and payments.
feel to me that most people feel the distance to the beach is important. I understand why it is crucial for smaller 3B/2B properties, but I wonder how important it is for properties that are above 5000SF with 6B/6B?
One argument could be made that the house itself is the attraction rather than the beach, and if the targeted travelers are the ones who will spend most of the time in the house and maybe go to beach once over the stay, 10 mile vs 25 mile doesn't change the story. Moreover, option 2 will offer more privacy given the distance to the neighbor, etc.
well, my property is across the street from Panama city beach. And there are plenty of houses on the beach and across the street. The houses on the beach rent first, the further you go away from the beach the less rented they become unless they are just rock bottom low. but i agree with @Andrew Steffens that 25 miles from the beach, i would not consider a beach property. and 10 miles from the beach, unless its some place that doesnt have many beach houses would still not be even the 3rd-4th choice by renters.
@Tom Tao I would look at what type of experience you could do on the 10 acres. Go karts, paint balling, weddings, micro greens, tiny homes, etc. I have clients in Anza seller financing a ex wedding venue/horse property that did $500k/year gross. Just depends on what you can do with the zoning.
@Tom Tao I would look at what type of experience you could do on the 10 acres. Go karts, paint balling, weddings, micro greens, tiny homes, etc. I have clients in Anza seller financing a ex wedding venue/horse property that did $500k/year gross. Just depends on what you can do with the zoning.
Thanks. Yea this is what i was thinking.
If none of the options are considered as beach house, then if we can pack in more amenities and do extra things like events will probably make a big difference.
I am not exactly sure how much difference it is for 2 acres vs 5 acres (usable) though. i could imagine with 2 acres i can still do weddings, tiny homes, etc? or in order to do events there is a minimal lot size which should strike for?
@Tom Tao pull the APN and look for the zoning. Then google that and read the city code. It changes for certain cities, counties, unincorporated communities. That should tell you what type of events and homes you can have per acre.
If you can't at least ride a bike to the beach then it's not coastal. 10 miles as the crow flies is at least a 10 minute drive with no traffic plus parking, loading/unloading the car etc. You may not notice much of a difference between the 2 properties.
2 vs 5 acres is not a significant difference from a purely land area standpoint but a larger property should have more privacy and potential uses. If the more inland property really does have an incredible view then that is something you can leverage.
Two things to ALWAYS remember when purchasing a STR....Proximity and location are the key between a mediocre STR and one that out does other comparable properties.
If people come to your area to go to the beach, the two things I mentioned above are very important!