We are thinking about buying a beach house that is not beachfront but just a short walk with great views of the ocean and beach.
It seems to be a great deal but the taxes and insurances are so high, they add another $1000 to the p&i total.
I see most houses similar in the area go for $200-400/night peak time.
I'm just wondering how these houses do during off peak time?
Someone we know owns 12 regular rentals SFH and 2 beach rentals and he's decided to sell off all his SFH's and build 2 more beach rentals. His beach houses are not beach front and he seems to do well. It looks like the more that can sleep the more they can ask.
I have 3 SFH's I rent now but vacation rental I can see is a little different. Any pitfalls I might not be seeing?
another thing I would look into Brenda is any association fees and if any association, their policies on rentals. Most associations will have a due diligence package that you can receive once you go under contract. If they only allow month to month rentals this can really limit your model and ROI. Also, I've noticed that VRs do not do nearly as well if it doesn't have a pool. Keep the all the amenities (even the smallest) in mind as they will limit your market and make some comps give you an unrealistic rental rate.
Thanks so much, I will look into the associations. The thing that worries me is that we are nearing the end of peak season down here. Just worried about taking this on without immediate income to help pay for it for the next 8 months.
With this particular house, it says it comes with another lot but I don't think there is enough room to put in a pool even with the extra lot just looking at it overhead on Google maps.
Brenda, i cannot help you, but am a bit interested in learning as well.
Also, I may be interested in your friends SFH...
I'll answer any questions you have. We got our first rental when we bought a new place to live and used our old house. That was 5 years ago and it's going good. The last 2 I just got. One last year and one this year.
I don't profess to know even a little as much as the big dogs on here but I have learned a lot from experience and from BP.