1st floor vs higher floors?

4 Replies

Hi,

we're considering purchasing an str in st augustine fl. Retirees in the winter (jan-apr), families in the summer (jun-aug). It will be mixed use (we'll use it oct-dec).

the onsite realtor is encouraging us to purchase a first-floor unit. She states retirees prefer the first floor (though there is an elevator) as well as families with kids. For our use, we prefer the 2nd floor due to better ocean views. Interestingly, 2nd and 3rd floor units tend to sell for higher prices but perhaps aren't as desirable in the rental market.

Looking over rental histories, jan-mar rentals seem assured but we're not sure about the high-value, summer rentals.

thoughts?



  

I don't purchase a property based on floors. For every decrepit person, there are plenty who are not. Parents with Kids prefer first floor? Toddlers maybe. Has an elevator? Problem solved.

you are over thinking this.

This is why I am not in FL or the gulf coast. Lots of tropical storms and hurricanes. Increasing due to warming. Don't want to do white knuckles 5 times a year hoping it veers away from me.

thanks @Ken Latchers I tend to agree, unfortunately, we have family not far from st aug and would like to spend more time with them as we all approach retirement. Also, we are tennis players, and in a one week visit found two incredible tennis communities in st aug

@Jeff Davidson with the amount of cash you're going to spend on this thing you could finance 5 single families in a C class neighborhood that would make you 2500-3000 CASH per month plus equity. (Hypothetical numbers for a short conversation). That would pay for a pretty nice trip to st Augustine every month.

Really what you’re trying to do here is not much of an investment it’s really no different than buying a boat. So just buy the boat you want and as Ken said don’t over think it! I wouldn’t buy this condo but if I were you I’d buy the one with the best view!

@Lucas Carl lol, actually, I think the better analogy is purchasing a leaky boat. There's no danger of drowning but I'd like to do everything possible to slow the leak. as for overthinking, in some ways, that's how I got into the position of safety from drowning :^)

anyhow, I'm retired and this forum has started to open my eyes to opportunities of deploying capital in new ways. very intriguing. To go off my topic for a moment, I worked in wall st asset mgmt, I thought I'd read that with the entry of private equity/asset mgrs to real assets, real estate returns have pretty much converged on stock market returns?

best,