STR on Perdido Key, FL

[Chris Hackett]

Hey All-

Been lurking and reading for a while.  Wife and I are about 7-8 years away from retirement (from Atlanta).  Over the years we've really enjoyed spending time on Perdido Key and are considering an investment in a condo there.  Our goal being to try and preserve some capital and potentially gain some equity / appreciation.  Potentially "flipping up" once or twice between now and then, eventually retiring to the property, or selling to acquire a retirement property there.

I'm an experienced, long-time licensed agent in Atlanta and have done many fix and flip deals in the Atlanta area, but really don't have any experience with STR or MTR, especially in Fl. I'm not looking to create cash flow, replace, or supplement income, so as long as the place isn't hemorrhaging cash, I'll be fine with it.

My 'ask' is to connect with folks who own or manage any STR / MTRs in the vicinity in the hopes of just getting more knowledgeable about the local regs, different communities, etc.

Thanks!

Chris

[John Underwood]

Many reason I stay away from Condo's including:

HOA regime fees

Unexpected and expensive HOA assessment fees for upgrades or repairs that you may not agree with.

Rules

Close proximity to others that could cause disagreements

Saturation and competition on renting condo's 

Parking

I would personally never buy a condo for these reasons and look for a deal on a house.

[Chris Hackett]

Quote from @John Underwood:

Many reason I stay away from Condo's including:

HOA regime fees

Unexpected and expensive HOA assessment fees for upgrades or repairs that you may not agree with.

Rules

Close proximity to others that could cause disagreements

Saturation and competition on renting condo's 

Parking

I would personally never buy a condo for these reasons and look for a deal on a house.

I definitely have a lot of the same concerns as you do. But surely people are making it work, as there are plenty available (as STR). We stay in them several times a year.

I'd say my biggest concern is assessments. Obviously HOA fees are usually pretty outrageous when compared to properties where there is no HOA or it's a typical SFR neighborhood with typical HOA dues for things like cutting the grass in common areas, or servicing the neighborhood pool. But do the rates for these places have those fees baked in?

My concern with a house is finding the balance between acquisition price and appeal in a beach town.  I believe people generally go to a place like Perdido to be at the beach.  To get a house on the beach (or near enough) is probably substantially more expensive than I can afford right now, especially as compared to a condo.  But I don't know .. it's certainly worth looking into.  I'm open to anything.

But there are plenty of condo STR's available and I'm interested in connecting with anyone who's successfully doing in the Perdido area to see if I can learn anything from them. Who knows .. maybe they're all taking a bath and will give me the same "stay away" advice as you.

Maybe there's a deal on an "interior" house that needs a little work but is a short golf cart ride away to the beach that could do well.  I'd be open to something like that.

Thanks,

Chris

[John Underwood]

Quote from @Chris Hackett:

Quote from @John Underwood:

Many reason I stay away from Condo's including:

HOA regime fees

Unexpected and expensive HOA assessment fees for upgrades or repairs that you may not agree with.

Rules

Close proximity to others that could cause disagreements

Saturation and competition on renting condo's 

Parking

I would personally never buy a condo for these reasons and look for a deal on a house.

I definitely have a lot of the same concerns as you do. But surely people are making it work, as there are plenty available (as STR). We stay in them several times a year.

I'd say my biggest concern is assessments. Obviously HOA fees are usually pretty outrageous when compared to properties where there is no HOA or it's a typical SFR neighborhood with typical HOA dues for things like cutting the grass in common areas, or servicing the neighborhood pool. But do the rates for these places have those fees baked in?

My concern with a house is finding the balance between acquisition price and appeal in a beach town.  I believe people generally go to a place like Perdido to be at the beach.  To get a house on the beach (or near enough) is probably substantially more expensive than I can afford right now, especially as compared to a condo.  But I don't know .. it's certainly worth looking into.  I'm open to anything.

But there are plenty of condo STR's available and I'm interested in connecting with anyone who's successfully doing in the Perdido area to see if I can learn anything from them. Who knows .. maybe they're all taking a bath and will give me the same "stay away" advice as you.

Maybe there's a deal on an "interior" house that needs a little work but is a short golf cart ride away to the beach that could do well.  I'd be open to something like that.

Thanks,

Chris

Correct, there are a bunch of Condos available to rent that's one of my points about saturation and competition driving prices down.

I don't buy houses in HOA neighborhoods either.

My next STR purchase will likely be a beach house directly on the beach or at least across the street with beach views. 

I already have the Lake House and the mountain cabin.

[Andrew Steffens]

I agree with John about condos - I have never really had positive experiences with them.  Also look into the Milestone Survey (law for FL when condo building collapsed in Miami.)  I did just sell a condo and it has over $100k in assessments to get up to code.

Im 6+ hours south in Tampa, but let me know if you would ever consider down here :)

[Chris Hackett]

Quote from @Andrew Steffens:

I agree with John about condos - I have never really had positive experiences with them.  Also look into the Milestone Survey (law for FL when condo building collapsed in Miami.)  I did just sell a condo and it has over $100k in assessments to get up to code.

Im 6+ hours south in Tampa, but let me know if you would ever consider down here :)

I really like the Tampa / St. Pete area.  I'm a huge fisherman, and love going into the Gulf.  My biggest complaint in Tampa / St. Pete is I have to go 150m into the Gulf to get into good deep water, but it's only about 50 -60 to get into good deep water from the Pensacola area.  Really though, I'm probably undecided as to whether I care so much that I'm ruling places like Tampa/St. Pete out.

As for assessments, that's definitely one of my major concerns. You can ask for disclosures and financials and all that from boards and HOA, but at the end of the day there's no guarantee you aren't going to get hit with one. On the contrary, you can probably count on getting hit with one.

I appreciate the response.  Thank you.

Chris

[Andrew Steffens]

Quote from @Chris Hackett:

Quote from @Andrew Steffens:

I agree with John about condos - I have never really had positive experiences with them.  Also look into the Milestone Survey (law for FL when condo building collapsed in Miami.)  I did just sell a condo and it has over $100k in assessments to get up to code.

Im 6+ hours south in Tampa, but let me know if you would ever consider down here :)

I really like the Tampa / St. Pete area.  I'm a huge fisherman, and love going into the Gulf.  My biggest complaint in Tampa / St. Pete is I have to go 150m into the Gulf to get into good deep water, but it's only about 50 -60 to get into good deep water from the Pensacola area.  Really though, I'm probably undecided as to whether I care so much that I'm ruling places like Tampa/St. Pete out.

As for assessments, that's definitely one of my major concerns. You can ask for disclosures and financials and all that from boards and HOA, but at the end of the day there's no guarantee you aren't going to get hit with one. On the contrary, you can probably count on getting hit with one.

I appreciate the response.  Thank you.

Chris

 What is your purchase price range?

[Kumar R.]

Hi @Chris Hackett curious, why not consider the emerald coast going from Navarre to PCB? Huge market with good returns. Not challenging your choice, just curious about your thought process.

[Chris Hackett]

Quote from @Kumar R.:

Hi @Chris Hackett curious, why not consider the emerald coast going from Navarre to PCB? Huge market with good returns. Not challenging your choice, just curious about your thought process.

TLDR: I would consider the area from Navarre to PCB. I'd probably go as far East as St. George.

 Fair question.  Truth is I would probably consider anything in that vicinity.  We have a soft spot for Perdido.  We really enjoy that you can be on the "bay/river" side of the Island, and still walk to the beach side.  I drag my boat down, put it in a slip on the river side behind the condo, but my wife can still walk across the street and spend the day reading under an umbrella at the beach.  And there are some surprisingly affordable places there.

Maybe my thinking was that I could constrain my research and 'education' to that specific geography and then apply what I learn to other areas I might consider.