Quote from @Mike Downey:
Quote from @Napoleon DeCiutiis:
Quote from @Mike Downey:
Hello,
I am looking to purchase an investment property in PCB that I will use for STR. I have seen a lot of mixed reviews on whether to go CONDO or SFR. I spoke with a realtor in the area and he is saying that a CONDO will have better cash flow due to occupancy rates. I am looking for a place $700k and under. I can get a condo on the beach or a SFR several blocks from the beach from what I am seeing. Does anyone have any SFR in this area that can validate occupancy rates on STR? The realtor is telling me that even for a CONDO I should not plan more than 60% and that if I get a SFR north of HWY 98, it will be closer to 20% occupancy rate.
@Mike, if you look at the current occupancy rates for PCB through Air DNA, they are at 64%. I would also take those numbers with a grain of salt b/c Vacasa and Soleil/Walmart Management Companies will skew those numbers, so as someone who solely sells STRs, I disagree with the estimates you were given. I have clients right now with 70% occupancy rates. With proper targeting and self management you can do that. The Short Term Shop will help you excel in both of those areas.
North of 98 is the Death Zone for STR, with the exception of a few spots closer to 30a/Inlet Beach.
Between @January Johnson and myself, we can answer any questions that you may have. Good luck! Let us know if you'd like any help and keep us updated on the forum with your progress!
Thanks for the guidance Napoleon. It's great to hear from people with skin in the STR game. How do you feel about SFR vs CONDO for STR in Panama City Beach area? Will one produce higher cash flow? From my research and using my budget, it appears that I will be able to charge more for SFR but will have less occupancy and vice versa for a CONDO, so it is difficult to determine which asset will be the most profitable.
Mike,
Great question. Right now SFRs older than 2001 are getting destroyed on insurance rates. That puts a lot of properties out of the numbers. That being said, What do YOU want when you imagine your beach STR? Coffee on the balcony watching sugar white sand and clear emerald waters? Away from the elevators and next door neighbors and a beach break in a SFR? A part of you needs to love the place, because it will greatly affect the amount of effort you put into your business!
My advice is to let the numbers speak for you. If you are interested in a SFR, make sure you get an insurance quote for that address (from local brokers, not national) and see how it works financially for you. Condos HOA covers the building insurance, so you only need to buy content insurance for them.
There are benefits to BOTH condos and SFRs, and here on the Emerald Coast, there is a market for both. Visitors spent over $3.1B here in 2022, with 19.2 Million Visitor Stays (source: 4thQuarter TOURISM IMPACT and year-end report for Panama City Beach).
Your money still goes a long way here and you can definitely make it work for you!
