All Forum Posts by: Candace Pfab

We have many beach condominium options in Orange Beach/Gulf Shores that qualify as a second home investment with programs with as low as 10% down, so you don't always have to come up with the larger down payment, but some buyers choose to go with a higher down payment to get a better rate.  It really depends on how long you plan to hold and what your long term goals are with acquiring additional properties.  

My degree is in Accounting as well, so it certainly helps me to crunch numbers.  My husband is a history buff and we live & sell in an area steeped in history, so he loves to share factoids about the area!  Use what you got!  Neither of my parents were fortunate enough to get a degree, but they have both exceled in the corporate world.  Many people do just fine without and I certainly don't think a degree alone will help you succeed, but it does provide a nice foundation to prepare you for the world!

Dave Meyer just posted this article that might be helpful! 

https://www.biggerpockets.com/blog/best-zip-codes-real-estate?utm_source=Iterable&utm_medium=email&utm_campaign=Newsletter%20%7C%208/18/20&utm_channel=28425

All of the lenders we work with are saying not to do this.  I have been told it is unclear how this will appear on credit reports.  It won't be reported late, but some have said there might be an indicator showing it is in forbearance.  One lender recently advised that you cannot refi while there is a forbearance on account.  Each lender has different requirements on repay - some as early as 3 months, so if you look into that alone, it may not be worth considering.  IMO, too much risk unless you have no other options!

@Tyler Hardy That's really smart to stay where you think you might like to buy. Gives you a great perspective of what might work for you or what may not. In general, AL numbers are better than FL. Much lower property taxes which also translates to lower HOA fees for Condos. We have had really good appreciation here in recent years ~ around 8.5% last year!

@Tyler Hardy Hi Tyler. You are asking some great questions and the best answer I know to give you is that rental income & expenses can be more predictable in a condo and attract a greater pool of guests. You will have a larger pool of folks that say, we always like to stay at Caribe or a Phoenix property, so they will be specifically searching for those types of properties. When you break down the HOA fees vs a expenses on a single family home, you typically see comparable numbers with the exception of amenities maintenance, which as you have already suggested, can drive up income & demand. While some of the condos do also see special assessments, you can also see large unexpected expenses with a single family home. Another consideration is that if we have a major storm event, it is usually much harder to get a single family home back up & running than a condo unit due to differences in construction and difficulty in getting a contractor to focus on your home vs a larger condo association who can attract contractors that regularly provide services for the association or can attract contractors due to the scope of the project. You can insure for loss of rent on your insurance policy, but there is usually a time or dollar limit on that & we have known of many instances where the work was not completed before the loss of rent coverage ran out. Hope that helps! We have owned two rental condos here & know the AL coast & W FL panhandle well. Feel free to reach out if we can help in any way!

It's possible.  Like Tom said, you just have to run the numbers & decide if you are going to self manage or work with a property manager!

Good feedback from John, but just want to clarify that management fees here run closer to 20% :)

Hi Matthew.  We live & invest in Orange Beach/Gulf Shores.  Buying now makes a lot of sense, especially if you are going to finance this investment since rates are at historic lows and you can lock in at today's values.  In this market, you see more value in appreciation than cash flow.  It will be tough to break even with 6 weeks of personal usage & you may have some tax implications to consider.  Here is the IRS position:  

Taxpayers renting property can use more than one dwelling as a residence during the year. A dwelling is considered a residence if it's used for personal purposes during the tax year for more than the greater of 14 days or 10 percent of the total days rented to others at a fair rental value.

Our prime season is Memorial Day to middle of August.  I would be happy to help you gather some numbers to do a deeper dive into your question if you want to connect!

@Trevor Aydelott  Many great comments here, but I will admit I could not get through all of them.  We like to use Zoom for initial meeting to establish rapport.  Makes a big difference vs a phone call or other exchange.  It can really help you determine if it seems like a good fit.  Look for an agent who has done personal real estate investing so they know how to help you gather the info you need to analyze a deal.  We just bought a rental condo in another state & I had to interview several agents before I found one that understood what info I would need to make a purchase.  The best agents have a pipeline full of good buyers, so provide your proof of funds as soon as you have found the right fit to demonstrate your commitment to the process.  Lots of people use "cash buyer" to get around having to qualifying their ability to buy.  If they are not willing to set up a Zoom or similar connection, maybe they are not used to working with out of state buyers which is a whole different process than working with a local buyer.  Try searching BP for agents that have profiles that say they are investor friendly.  Best of luck to you!