Best vacation home location?

8 Replies

I'm looking to pick up some vacation homes for passive income. I want to be able to do weekly rentals at least, possibly weekend rentals if allowed. I was looking in Daytona because you can get a house in walking distance to the beach for around $150k and rent it weekly. From what I can tell, they rent for around $2-3k/month, possibly $4k in a busy month. 

Anyone know anything about Daytona or can recommend other areas in FL (or even outside FL) that are good vacation homes for passive income? 

(Ideally it would be nice if they were in desirable locations so I could use them myself on occasion, but not a requirement)

Thanks!

For that price range it will be extremely to find a rehabbed property that will provide that type of monthly cash flow. I wholesale properties in Daytona and work here full time, and have not been lucky enough to get such a great bargain on a property in that price range and IN A DESIRABLE NEIGHBORHOOD. Surely, a simple map view may show you that a certain property is only x miles from the beach but it won't speak too much about the area. My suggestion is to take the drive from Miami, stay in a nice hotel, spend a few hours driving the main roads and some of the potential neighborhoods you may be interested in. This will show you what I am talking about.

Note: Stay away from 32114 area code!

I know many who are making money here, and seasonal rentals are great, but I am skeptical about a $150,000 investment making you more than 1.5% monthly gross here. 

Hope that helps. 

I wasn't looking at rehabs. I'm seeing furnished, turnkey vacation homes (2-3brs) in the $150k range in 32118 a few blocks from the beach that I'm being told could be rented as vacation homes (weekly/monthly timeframes) and make on average $2-3k/mo with an occupancy rate of around 60-70%. Logically those numbers make sense for what vacation homes typically rent for in just about any beach town, and those returns would be great. Do you think that's unrealistic, or is there something I'm missing? Thanks!


Originally posted by @Rainiel De La Nuez :

For that price range it will be extremely to find a rehabbed property that will provide that type of monthly cash flow. I wholesale properties in Daytona and work here full time, and have not been lucky enough to get such a great bargain on a property in that price range and IN A DESIRABLE NEIGHBORHOOD. Surely, a simple map view may show you that a certain property is only x miles from the beach but it won't speak too much about the area. My suggestion is to take the drive from Miami, stay in a nice hotel, spend a few hours driving the main roads and some of the potential neighborhoods you may be interested in. This will show you what I am talking about.

Note: Stay away from 32114 area code!

I know many who are making money here, and seasonal rentals are great, but I am skeptical about a $150,000 investment making you more than 1.5% monthly gross here. 

Hope that helps. 

I figured that you meant turn-key and that is why I am more skeptical about what you are being told. I am wondering who is giving you that information. That doesn't sound very accurate to me. Are these realtors trying to sell you an opportunity? Are you paying attention to the construction type of potential properties? I would not be caught dead in Daytona with a wood frame house, for example. 

Since I'm not too familiar with your side of the state, I can't give any recommendations on areas, besides what to avoid. 

Look out for counties that have laws pertaining to short term rentals. In Pinellas County, which has Clearwater Beach, we are seeing people getting fined left a right for breaking the rules. So make sure the county is short term rental friendly. 

Be aware when buying a condo or townhouse. Associations have rental rules, so either vet the association thoroughly, or avoid it all together. 

They're concrete block houses. They can be rented out on a weekly bases. I've been looking for vacation houses for a while with my realtor, that I can do short term rentals on. He found Daytona still had houses at the price point with high enough vacation rental prices that would potentially produce the kinds of returns I'm looking for. Is Daytona Beach not a good area to buy in? I'm sure there are slower times, but do they not get vacation rentals year round? Are there other areas I should be looking at instead? Thanks!

Originally posted by @Rainiel De La Nuez :

I figured that you meant turn-key and that is why I am more skeptical about what you are being told. I am wondering who is giving you that information. That doesn't sound very accurate to me. Are these realtors trying to sell you an opportunity? Are you paying attention to the construction type of potential properties? I would not be caught dead in Daytona with a wood frame house, for example. 

I have 5 vacation rentals in the Smoky Mountain area of Tennessee.  Can get a turn key property that comes fully furnished for 200-250k, and we are grossing 2 1/2-3% of purchase price per month in the slow months, and closer to 4% in the busy season, (May-October).  I'm happy to chat with you about our experience so far there, it's been pretty great, and you don't have to worry about hurricanes. ;)

Avery Carl, Real Estate Agent

Looking at 32118 you are going to be focusing on party renters, not families. Daytona is spring break country and bike week.  Plus, there are some pretty rough areas (I'm talking slum lord) in this zip.  But I'm sure there are also some streets that could really work, probably north, closer to Ormond Beach and farther south near Ponce Inlet.  This is definitely a driving the neighborhoods situation.  If  you want a family friendly vacation rental, I suggest looking in Ormond and Ormond by the Sea.  Prices are a little higher, but you get a better quality renter.  Oh, and I live in Ormond and work in Daytona...

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