Relatively new to the real estate STR game. Currently looking for beach side vacation rental opportunities in the Fort Morgan area of the gulf coast. It's about 20 miles outside of Gulf Shores. Wondering if anyone has experience with how STR's do in this market as it's less developed and a bit sleepier than Gulf Shores/Orange Beach. Thoughts are appreciated!
They do just as well. Pay attention to the flood zones called CBRA as insurance is going to work a little differently. But Fort Morgan is an awesome place to invest in STR!
So glad you asked this! I had been shopping Gulf Shores but avoiding Fort Morgan bc I assumed it would not do as well. It does run cheaper than Gulf Shores, and Orange Beach is even higher! Following...
What kind of annual returns would you expect in this area? Based on the prices going up I can’t see over 2-3%.
We typically see 6-7% cap rates if professionally managed in the Ft Morgan area.