Short term rental investment - Seaside Florida

13 Replies

Investment Info:

Single-family residence fix & flip investment in Santa Rosa Beach.

Purchase price: $1,000,000
Cash invested: $1,000,000
Sale price: $1,500,000

8 bed, 8 bath home near Seaside Florida. Great short term rental.

What made you interested in investing in this type of deal?

Cash flow and appreciation

@Eric Merkle

First, I am a newbie here so I didn’t realize the post was going to come out the way it did. This investment was about four years ago.

It is more difficult now to have this same type of success. I believe it’s still possible but you have to build which has inherent risk due to the time it takes to build a property weighed against where the economy will be in the next year or so.

Unfortunately, 30A property values are continuing to rise, and will as long as interest rate remain low, at least for the next 6-12 months. This is partly due to the cost of lots, and the higher costs of new construction; for some reason, the closer to the water, the higher the price per square foot goes up. In two years, I've seen about a 10-13% annual increase in our properties. I have to feel that 30A properties are continuing to rise in cost due to exclusivity and lack of any significant new construction. At the same time, I see rents rising more than 4-5% in the next two years dues to acquisition costs of the higher priced properties.

Sand Dollar Vacation Properties, LLC

Hi @Eric Merkle ! I've been looking into buying a property around Seaside/30A probably in the next 6 months. I've been going to Destin for the last 20 years and know that area pretty well but am more interested in buying a property around the seaside area as a vacation home for myself but also for Airbnb. Do you have a good realtor you know out there or any tips for finding homes that may not be on the market? 

@Kristina Modares

Homes generally go for slightly less during the cooler months and are certainly easier to show. Prices are higher (for the most part) than they were when this thread was generated.

Proximity to the beach and number of beds determine rental rates. I like Seaside and I believe Inlet Beach (west Panama City Beach) is the next mid-high end market. I like single family homes for the area because they can easily go on a 3-6mo. lease in the off season. Property management costs can sometimes make or break the deal....so I suggest self-managing if it is feasible for you.

Let me know if you want to take a look at something- happy to help you hunt.

@Kristina Modares

We’ve worked with Rachel Leferbure and she has been fantastic. I highly recommend her.

I don’t have any good insight on off market deals other than working with the realtors. I agree with the other post that the winter/fall market does seem to help with lower pricing or people more willing to deal.

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