Anyone doing STR around the Space Coast/Cocoa Beach?

Question

We are looking to purchase our 1st STR this year/early next year and are strongly considering this area. We have been vacationing there every summer over the past decade and think it'd be a good location, as improvements, renovations, upgrades, etc to existing properties seem to picking up pace. The beaches are great, and it's close enough to attractions in Orlando for people to travel. I'd love to pick somone's brain who is more experienced and in that market. I'm over in Tampa, so about a 2 hr drive.

I guess one thing I'm trying to figure out is if it is worth doing a condo on/near the beach or if I should pursue a single family home.

I guess one thing I'm trying to figure out is if it is worth doing a condo on/near the beach or if I should pursue a single family home.

Tyler Gibson · Answer

There's some benefits to doing condos. Primarily a lot of the maintenance that you would otherwise have to take care of is handled by the hoa. However many HOAs don't allow short-term rentals so it's something that you'll need to verify every time you look at a property. I think there's more allure for people that can stay directly on the beach but that could just be a personal opinion. I think too since this is something you're planning to use yourself you should buy something that's going to fit your needs and then rent it out to offset the ownership cost. My wife and I purchased a two bedroom two bath beachfront condo in Ormond Beach which is just North of Daytona. As a peer investment it may not have been something that I would have looked at to seriously however it fit our specific needs perfectly and I would be able to rent it out to offset most if not all of the ownership cost.

Michael Baum · Answer

Hey @Keith Turney, if you like it and keep coming back, that means others would like it and keep coming back.

Just check to make sure you can do STR's in the places you are looking at. On the beach is always the best. Personally I would do a SFH if possible. Less risk IMHO with HOA's and the like. If I had a choice between 1 block off the beach SFH or a on the beach condo, I would do the SFH as long as access is easy.

Mike Shulman · Answer

I've actually studied the Cocoa Beach market extensively for short-term rental. Between space shuttle launches, Cruise ships, music events, and being the closest beach to Orlando it is a great choice. There are only a handful of condos that allow short-term rental and they're very difficult to acquire. People in the buildings usually buy them before they even go listed. Single-family houses on the other hand a lot of people don't realize can be short-term rental so they're a little easier to acquire. Houses with a pool and canal access can make over $10,000 a month based on season. There is a specific map that shows where you're allowed and not allowed to run a short-term rental business in the Cocoa Beach area. Feel free to PM me and I'd be able to assist you in finding something if you're looking for some help.

Ps, I just saw a gutted house canal front house without a pool in a perfect location and it's the cheapest I've seen in a long time. 499k

Lucie Tighe · Answer

@Keith Turney, it's all about location. Beach front property will be a bigger producer. Pros and cons for both. HOA can be a hassle to deal with.

Keith Turney · Answer

Thanks Michael!  I am actually leaning that way.  I'll probably have to be more patient and diligent to find that, but believe it can be done for sure.  Plus - with it being near Patrick AFB and Cape Canaveral, the SFH could end up as a LTR if need be.

Keith Turney · Answer

Thanks for the reply Tyler.  Yeah, we'd probably only use it a week or two a year, and just rent it as much of the other 50 weeks as possible.  Those 700 sq ft 1/1's and 2/2's right on the beach can  be popular, but as you mention, I'd need to be really educated on the rules they may come with.

Anyone doing STR around the Space Coast/Cocoa Beach?

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