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New to the forums. Been lurking for a while, but starting to get serious about investing now. I've just recently moved to Key West and the region is a little bit wonky. I've been looking at houses for about 6 months now, and this is by far the best deal in the price ranges I can afford.
House is a duplex with a 3/2 and a 1/1. I plan to live in the 1/1 and rent out the 3/2. I am factoring a rentt of $2250 for the 1/1 as I can't really find anything cheaper in the area that I would be willing to live in. This is a win for me, as I receive a housing allowance of $2900, so I'm still profiting. I haven't seen a 3/2 on the island renting for less than $4000 on a yearly rate (winter rates are insane), but I'm being conservative and calculating at $3000. If/when I start a family, I can transition to the 3/2 myself, potentially still rent out a room, and then rent out the 1/1. My father has expressed interest in moving to the area, and might be inclined to live in the 1/1. Rent would most likely decrease to about $1700, but I would be getting a very good deal on a 3/2, better than anywhere else I would be willing to live by a large margin.
I'm keeping vacancy rates very conservative despite the fact that I will be occupying one of the units and not factoring any money going into the house immediately as it is move in ready and some major repairs are being made (new roof and siding) price to the sale.
I realize that seems like a lot of justification, and it might be a little, but the sheer prices of rental units down here, decent ones, is unlike anything I have seen. I could easily afford the home on my salary with no rental income and I have job security for at least 3 years.
Would be living in the home for at least 3 years personally, potentially much longer based on other factors.
My first time posting so I will make any edits required. Thank you in advance.
Probably will do nothing to answer your question...but this seems like the perfect AIR BNB. Have to be able to get 2k a week out of a 3/2 I would think.
How do you come up with 5100 as gross rents? That includes your housing stipend? @Daniel Winsor
David, I've definitely considered it. I don't understand AIR BNB rentals and might be willing to look into it after I get my feet wet in the standard rental, but Key West is the place for it for sure. That said, there are an insane number of rentals like that, so I'd imagine the market is flooded.
I would be living in the 1/1 to start off with, and renting out the 3/2. I am being conservative and saying $2900 for the 3/2. I have checked every rental site, Craigslist, and my RE agent has said 1k per bedroom is a good starting number, so I feel comfortable using that figure. I have looked at 1/1 units in the area if I were to rent on my own, and the places that have caught my fancy are in the realm of $2250, so I used that number because that is what I assume I WOULD be paying if I rented on my own. Currently, I am living in a hotel at a cost of $75 a night AND paying storage at $250 a month, meaning my current living expenses are $2500 before higher food costs.
Long story short:
3/2 - $2900
1/1 - $2250
As I answered on your other thread, I am by no means a local. However, most Properties in KW are subject to a 28 minimum rental
I presume you mean days when you said "28 minimum rental". That would suit me fine as I plan to do 6-12 month leases. Air BnB is not something I feel comfortable with at this stage in the game.
Yep, Airbnb and anything less than a month are Hughly regulated in the Keys, and they are active in their enforcement.
Where in Key West was this property? New Town, Old Town can make a decent difference. I just rented out my 1/1 for 2150 and had over 30 applicants in under a week so 2250 would be safe! Lets talk more later!