Looking to buy a short term rental in Destin, FL

[Chris Gerbig]

Hello, I currently have 2 short term rentals in Nashville that are doing very well. I have them listed on all the vacation rental sites and they're both booked up through 2017. I'd like to get a property in Destin, FL and do the same thing. My family always vacations or Destin and I know it's a popular area. Can anyone give any insight on this market? A few questions I have: Should I look for house or condo? Are there any taxes/fees I should be aware of that are specific to Destin? Anybody else have any experience in this town? I don't need a full-service property manager, I will just need a company for cleanings/maintenance. I use Evolve Vacation Rentals and they are responsible for listings, marketing, payment, customer service, photography and they only take 10%. Any advice would be appreciated! Chris

[Andrew Johnson]

Chris Gerbig I'm with Justin Tahilramani on this one: you'll trade cash-flow in Nashville for a "free" vacation in Destin. The same can be said for most all of the Gulf Coast. The other challenge is that if you have a family and want to stay during a peak time (4th of July, etc.) you'll really hurt your ROI. Every Gulf Coast vacation (your short term focus may be different) rental I've looked at involves using peak revenues to cover low-occupancy losses. Now if you think Destin is: ripe for appreciation, a good geographic hedge, etc. that's a different story. But it's likely not a great analogue for a Nashville short-term rental.