Investor · Asbury, IA · Member since 2017 · 2 posts · 0 votes
Hello Bigger pockets! My Dad and his girlfriend are looking to purchase a condo in Destin, Fl. We live in Iowa, and want a place to stay for a couple weeks of the year, and rent it out the remainder of the year. We have vacationed in Destin for years, so we are decently familiar with the area. I am going to try to make these questions as clear and understandable as possible, so here we go. First of all, is there a more financially smart location to buy a condo? For example, is it smarter to buy a higher priced condo on the beach, or a lower price condo a few blocks away from the beach? Will the rent difference and possible less vacancy make up for the higher priced beach front property? We are hoping to have positive cashflow on the property, or at least break even. Is there anyone in Destin who has any experience with condo ownership, OR has any tips, information and help to give. MUCH APPRECIATED!!!!!
Real Estate Agent · Destin, FL · Member since 2016 · 57 posts · 45 votes
8y
@Josh Pociask Destin is a great place for a potential vacation rental, as you already know since you've been here before!! I moved here in 2011 from the Des Moines area, and every year it has gotten busier and busier with tourists, so the market is currently very strong with demand for rentals.
I agree with Aaron about going with a beachfront unit, or at least a complex that is practically beachfront vs. going with something that is a few blocks back. People will want the convenience of being able to walk to the beach with all their stuff vs. having to find a parking spot in the limited public parking areas. But it of course depends on the numbers!
One thing to keep in mind is property management for short term rentals. Management can run about +/-20% for short term rentals in the area, but they will take care of everything for you, so it may be worth it as opposed to trying to manage it from afar.
I currently have a unit on the market that is in the Miramar Beach area. I've received quotes from lenders for different types of loans, insurance quotes, and should be receiving rental projections from one of the major property management companies in the area. If you're interested in seeing the numbers, please feel free to send me a message and I can send them over.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
Yes beachfront will command more rent and less vacancy (you have to do the calculations to see if it offsets the cost), but it seems like this is more of a vacation home rather than a property where you are trying to maximize ROI so buy what you like.
Real Estate Agent · Destin, FL · Member since 2016 · 57 posts · 45 votes
8y
@Josh Pociask Destin is a great place for a potential vacation rental, as you already know since you've been here before!! I moved here in 2011 from the Des Moines area, and every year it has gotten busier and busier with tourists, so the market is currently very strong with demand for rentals.
I agree with Aaron about going with a beachfront unit, or at least a complex that is practically beachfront vs. going with something that is a few blocks back. People will want the convenience of being able to walk to the beach with all their stuff vs. having to find a parking spot in the limited public parking areas. But it of course depends on the numbers!
One thing to keep in mind is property management for short term rentals. Management can run about +/-20% for short term rentals in the area, but they will take care of everything for you, so it may be worth it as opposed to trying to manage it from afar.
I currently have a unit on the market that is in the Miramar Beach area. I've received quotes from lenders for different types of loans, insurance quotes, and should be receiving rental projections from one of the major property management companies in the area. If you're interested in seeing the numbers, please feel free to send me a message and I can send them over.
Rental Property Investor · Denver, CO · Member since 2017 · 179 posts · 208 votes
8y
Hey @Josh Pociask I ran numbers for beachfront condos a few months ago and pretty much everything on the market for a 2BD/2BA condo was $400k+, and they never worked out. I think if you can find a foreclosure or something for under $300k with 2 bedrooms you can cash flow positive, but those units either don't exist or are very hard to find.
I do know a couple who owns 2 condos on Okaloosa Island and do fairly well. They cash flow on each property and also use them as a vacation spot. I think they got lucky and found reasonably priced condos with low HOAs to make it work.