Rental Property Investor · Winslow, ME · Member since 2008 · 826 posts · 281 votes
My wife and I are fully aware that just "renting" vs. buying a second home (and VRBO'ing it when we're not using it) is almost always going to be the better financial decision...however...here we are, about every 3 years, considering it again! there's just something about being able to go at a moment's notice and having a locked up closet where we keep our own supplies & some clothes, so we don't have to pack much.
We would like to purchase a condo as close to the water as possible in a location that is not completely overrun with people but also somewhat desirable. It doesn't have to be the perfect place we would like to retire because we probably will never spend more than 2-3 months a year there as we plan to travel worldwide in just a few years. But it should be decent enough. We've stayed in Cocoa Beach and liked it but didn't love it. We've heard NOTHING but good about the Venice area and a little north and south of that. We would of course like a place that doesn't restrict rentals. Heard halfway decent things about Cape Coral.
I haven't made our wishes 100% clear I know, but based on what I've said, what areas might make sense?
Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 219 posts · 275 votes
8y
I'm in Fort Walton Beach, FL. Have three units here and yes, I self-manage (I agree with @Marc Jackson) and do have a profit for sure. Destin is more expensive and rather saturated, but places like Ft Walton Beach, Panama City Beach and Navarre Beach on the Emerald Coast still offer some reasonable beach deals. If you want to make a profit you probably cannot afford to give 20-30% or more of your gross to a management company. You will need to either self-manage completely or possibly self manage mostly and get some lower-cost (usually flat fee) admin/booking assistance with to deal with responding to guests right away, track inquiries, dispatch the cleaning crew, etc, but you'll still need to budget on putting in some hours managing your place.
I can't speak to other areas but the Florida Panhandle is definitely an option to consider. Good luck!
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
8y
@Kenneth LaVoie I saw an episode of VRBO/VRP on A&E (Saturdays mornining at 11AM) and they mentioned that Panama City Beach was the number 1 VRBO destination. Something to check into.
Also someplace in NC or SC (Myrtle Beach, Charleston, Hilton Head etc) would be closer for you to get to.
Rental Property Investor · Panama City Beach, FL · Member since 2017 · 44 posts · 44 votes
8y
What do you mean by “renting” vs buying a second home is a better financial decision. You can have your cake and eat it too. We have units in PCB and rent them out,keep stuff in a locked owners closet and can block off dates anytime we want to go. You have to “self manage” to make all of that possible. This way, we can maximize rental revenue when not using it
Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
8y
St Augustine. There's a festival every other day, national monument, oldest city, ocean beaches, str friendly, year-round demand. Centrally located, draws tourists and relocating folks from lots of places, days drive for many. We can't say enough about our choice here for exactly the reasons you say.
Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 219 posts · 275 votes
8y
I'm in Fort Walton Beach, FL. Have three units here and yes, I self-manage (I agree with @Marc Jackson) and do have a profit for sure. Destin is more expensive and rather saturated, but places like Ft Walton Beach, Panama City Beach and Navarre Beach on the Emerald Coast still offer some reasonable beach deals. If you want to make a profit you probably cannot afford to give 20-30% or more of your gross to a management company. You will need to either self-manage completely or possibly self manage mostly and get some lower-cost (usually flat fee) admin/booking assistance with to deal with responding to guests right away, track inquiries, dispatch the cleaning crew, etc, but you'll still need to budget on putting in some hours managing your place.
I can't speak to other areas but the Florida Panhandle is definitely an option to consider. Good luck!
Property Manager · Wisconsin and Florida · Member since 2017 · 346 posts · 227 votes
8y
We have a place in Venice, FL. We love the area but the gated communities we visited aren't very STR friendly. Most have at least a one month minimum lease. If you choose Venice, a SFR that's not part of an HOA is probably your best route. We also love Sarasota, Clearwater, Tampa area. It's expensive to buy there so we like having a house in Venice with those cities not far away.
Property Manager · Wisconsin and Florida · Member since 2017 · 346 posts · 227 votes
8y
@Villy Ellinger We are looking in the panhandle and were wondering if there were any companies that did the on the ground work (cleaning, maintenance, linens, etc) for a fee? We manage all of the bookings but would like to find a company to help us with the other half. TIA
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
8y
Kenneth LaVoie Take a step back and book some vacations for this year! You’re going to be using the thing (ideally, 2-3 months a year for, what, 30 years?) for a long time. Horrible math: 90 months (3 months per year * 30 years) is 7.5 years. 7.5 years is longer that most people stay in their primary residence. So pay for peak season rentals in your Top 3 markets and figure out where you want to be. Then look for a good option in that market. Maybe have a goal to purchase in November when you’re into the off-season and you have owners facing a few months of negative cash-flow. My unsolicited two cents...