Realtor · Austin, TX · Member since 2018 · 52 posts · 32 votes
I'd like to start a discussion regarding rental properties in the Northwest Florida Panhandle, Specifically Destin to Panama City Beach. I'm curious to hear any opinions from investors/owners of Short-term vacation rental Condos vs Homes.
Feel free to offer any input you see fit...here are a few questions I'd love to hear answers to!
Have you had better experiences with condos, smaller homes, or larger multi-family homes?
What made you choose one particular area over another?
Is it purely an investment, or do you utilize the property occasionally?
and for the out-of-state investors, what made you choose the emerald coast over other vacation hotspots?
If there is another discussion about this or similar topics, please point me in the right direction or post them here.
Thanks in advance, and I hope you're all having a great 2019 so far.
Rental Property Investor · Chatham, MA · Member since 2015 · 75 posts · 65 votes
7y
@Luke Carl dispensing unadulterated, sugar free truth bombs! @Caleb Richardson the panhandle, forgotten coast has intrigued me for a while, like many a frozen northeast investor. It's the great white whale, the northwest passage to dream of fat profits in a sunny southern locale during our nor'easter assaulted off season here on Cape Cod. But like L.C. , the numbers are the numbers and they have'nt blown me away.
Condos , for me, add too many uncontrollable variables in a segment that already is under assault by local and state governments. I like my houses because there are alot of cards that I can play to increase my odds of success. Buy it right, add value, apply low cost leverage and manage it at a level above your competition. What I see with condos is, besides pesky HOA's , cranes that can throw up loads of bright and shiny new asset devaluing inventory.
To reiterate the most truthful of those solid truthbombs. For a Realtor to speak to the investor, be an investor. I see lots of listings on MLS here on Cape Cod that say "would make a great rental" ....yes, Great..... but for who? The renter maybe , but rarely the investor. It's meaningless gobbaldy gook for the retail buyer who thinks he can score himself a "free" vacation home. In fairness, I was kinda that guy in 2012 when I bought my first place. Fortunately I bought at the bottom of the market here and that forgiving market along with the ascendance of Airbnb gave me time to learn what I was doing.
Find some deals for yourself and make them cashflow. Whip up some proof pudding and your inbox will be forever full.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Caleb Richardson. Lots of threads on PCB and Destin just search for them. In my experience no money to be made unless you’ve got cash you need to park and you self manage. If you’re financing and want to actually make money it’s not a good market.
Realtor · Austin, TX · Member since 2018 · 52 posts · 32 votes
7y
@Luke Carl Understandable, 1031 exchanges are popular here because of the reasons you listed. However, I can't imagine there would be so many rental properties here if there wasn't money to be made.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Caleb Richardson. You’re the realtor from Destin we should be asking you these questions but I’d guess you’re new?
We flew down and explored the market a few times and found that IF you’re financing and self managing you’ll likely break even for the year.
My suggestion to you is..... read every post on this forum about this market, call 50 lenders and ask 2000 questions until you have all the answers and find one you want to work worth. Buy 2 or 3 condos of your own. Put systems in place and hire crews to self manage. Get some hard facts that you can make cash, and eventually share your success and knowedge with your clients and the phone will never stop ringing.
If you want to work with investor clients you have to be an investor. Otherwise how can you help them? Get some properties under your belt and in your profile.
Is your assistant managing your BP profile for you? Even if he is change it from 3rd person.
Maybe give yourself a nickname like “Condo King” and grow a mustache that would be cool.
Show me how much cash I can make off a PCB condo and I’ll buy 10 of them. And so will everyone else!
Realtor · Austin, TX · Member since 2018 · 52 posts · 32 votes
7y
@Luke Carl Right you are Sir! We all have to start somewhere though, don't we? I'd like to think I know an acceptable amount about the rental industry here, but not as much as I'd like to. My goal here was not necessarily to play devil's advocate, but to spur a discussion that would help me to see more perspectives than just the ones I have experienced firsthand from the people in the industry. I'd like to hear from the folks actually investing their own money in these properties, not the brokers, property managers, cleaners and maintenance people that I know and have worked with. I have yet to guide a client in buying a STR property here, although I will be listing one soon. I wanted to use this opportunity to learn a bit more from others, and by starting (yet another) discussion about this area myself, I would be more capable of guiding the conversation in the direction I'd prefer.
I fiddled around with the search function and had much better success finding other similar posts just now though, so I apologize for rehashing the same old thing for the more seasoned/active BP posters. I'll be reading through those while I respond. I appreciate your input though Lucas!
Rental Property Investor · Chatham, MA · Member since 2015 · 75 posts · 65 votes
7y
@Luke Carl dispensing unadulterated, sugar free truth bombs! @Caleb Richardson the panhandle, forgotten coast has intrigued me for a while, like many a frozen northeast investor. It's the great white whale, the northwest passage to dream of fat profits in a sunny southern locale during our nor'easter assaulted off season here on Cape Cod. But like L.C. , the numbers are the numbers and they have'nt blown me away.
Condos , for me, add too many uncontrollable variables in a segment that already is under assault by local and state governments. I like my houses because there are alot of cards that I can play to increase my odds of success. Buy it right, add value, apply low cost leverage and manage it at a level above your competition. What I see with condos is, besides pesky HOA's , cranes that can throw up loads of bright and shiny new asset devaluing inventory.
To reiterate the most truthful of those solid truthbombs. For a Realtor to speak to the investor, be an investor. I see lots of listings on MLS here on Cape Cod that say "would make a great rental" ....yes, Great..... but for who? The renter maybe , but rarely the investor. It's meaningless gobbaldy gook for the retail buyer who thinks he can score himself a "free" vacation home. In fairness, I was kinda that guy in 2012 when I bought my first place. Fortunately I bought at the bottom of the market here and that forgiving market along with the ascendance of Airbnb gave me time to learn what I was doing.
Find some deals for yourself and make them cashflow. Whip up some proof pudding and your inbox will be forever full.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Caleb Richardson 100k to 1mil. No bueno. Again.... call a ton of lenders tomorrow and ask a ton of questions. Learn what “non warrantable” means. Buy 6 of these things. Figure out how to make cash. The phone will ring forever.
Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
7y
Once again, I come to battle the "not in PC" naysayers. I own three vacation rentals here that are NOT on the beach--duplexes (on one property, I own both sides), and I make money year-round. I rent on Airbnb only, and I manage them myself (and a housekeeper who cleans them).
ALSO...There is a TON of money to be made here for at least the next 2 years in short OR long-term rentals in PC. Due to the hurricane devastation, we have a zillion contractors here working, and the rental market is so tight as to almost be nonexistent. ANYTHING for rent goes quickly--furnished or not. Many people have lost their homes completely or have lost the use of their home for 4-12 months and are desperate for places to live. Message me directly if you would like more information.