Short term rental experience in the 30A area

11 Replies

Hi!

I’m curious if anyone here has a condo used for short term rentals in the 30A area. I’m playing with the idea of having a condo for vacations and short term rentals as a part of our portfolio. Wondering if the income is worth it.

(this doesn’t have to be specifically 30A, just somewhere in the Gulf close to Alabama, so even Gulf Shores or Orange Beach).

Thanks!

@Eric Gay

From the deals I have reviewed, I think there is great potential for a better return in Gulf Shores & Orange Beach. Lower pricing points & property taxes. I can send you some deals I have reviewed for this area if you want to send me a colleague request!

@Avery Carl - As always, thanks for the shout out :)

@Eric Gay - You can most definitely cash flow along the Emerald Coast, and I'd be happy to help you out.  I'm closing on another personal condo this week actually on Okaloosa Island (near Destin) for $170K, and I'm expecting around 30K gross for per year (my personal goal is $35-40K). I have higher end clients looking upwards towards the $1 mil properties as well, where you can still cash flow there.  

Not gulf front, but gulf view or close proximity you can.  There’s a look that rents and certain features of the home or community that need to be in place.  Do Vrbo and Airbnb. I can go into details when we have more time to chat privately 

Originally posted by @Daniel Walker :

Not gulf front, but gulf view or close proximity you can.  There’s a look that rents and certain features of the home or community that need to be in place.  Do Vrbo and Airbnb. I can go into details when we have more time to chat privately 

 If I wanted to also use it as my family vacation home, would that affect the whole gulf front vs view thing? A little less return for owning what I really want?

That's what you have to ask yourself in this market...are you buying strictly for investment, or do you want a beach house on 30A and make enough to break even and profit off write offs and hopeful equity. With financing, you should be able to cover your costs on gulf front, but you can't use it many holiday weekends or summer months. Cash purchase you're topping out at that 6-7% roi. But not bad when you insider your going to get a beach house that you can use out of it.

Eric, The Gulf Coast has some great options as far as cash flowing STR's. For the price, units do very well with regards to gross rental income. I've included a screenshot of some analysis I've done on a for sale unit in Gulf Shores that would do very well.

Originally posted by @Jon Latorre :

Eric, The Gulf Coast has some great options as far as cash flowing STR's. For the price, units do very well with regards to gross rental income. I've included a screenshot of some analysis I've done on a for sale unit in Gulf Shores that would do very well.

Can you advise where that rental projection came from?  I don't know of any units or houses that size doing that kind of revenue in this area!  I do know of some property management companies that present inflated numbers, so I would caution anyone relying on this info.  We have been investing in this area for 10+ years & I would do that deal all day long if I felt comfortable with that projection :)  Just trying to weigh in on a healthy conversation here!