Investor · Syracuse, NY · Member since 2014 · 13 posts · 0 votes
I'm interested in a property in downtown St Augustine, FL. It looks like the highest and best use would be a mix of long term and short term rentals until leases expire. Eventually the entire property could be transitioned to short term rentals if the model works. Many places are pushing back on short term rentals in neighborhoods.
I'm hoping to discuss this with people currently doing this in St Augustine to get a feel for the climate and understand the regulations/taxes/fees involved in this area.
I am not doing it however at least 3 houses on one street where I have an investment house are doing it...there are streets where it is legal... not that the city is pursuing anyone yet but I can foresee that at some point they will so if possible I would buy where it is allowed...all that said we did just have a hurricane and the whole city was flooded...probably make it very difficult to get insurance for awhile ...
It's on Carrera St in the first block off N Ponce De Leon. Eight units. I was in the city after the hurricane came though. It was hit and miss on many of the streets through there.
Just my personal opinion.... St Augustine is very overpriced right now, especially for long term rentals. I've had trouble finding properties that'll cash flow. But I think the recent Hurricane will really have detrimental effects on prices, especially in the near short term, creating a buying opportunity, then they'll rebound. I've spoke to plenty of people who haven't dealt with a Hurricane in a long time, and everybody is just spooked. I'd wait 6-12 months to pull the trigger on anything.
Thanks Kurt, I was thinking the same. There may be a price drop in the future. But if not, the short term market looks to be the only way that some properties will cash flow.
I am concerned a bit about insurance rates as Zana mentioned as well.