Condo vs. House with a land appreciation

[Reyansh Budhagoda]

Hello All,

I am looking into STRs in holiday destinations near the beach. Does Condo vs Houses in these areas appreciate differently? Should I be concerned about future that can occur? 

[Melissa Bovee]

I have a condo STR in a mountain town that people holiday at all year. There are cons to the condo (HOA and cost as mentioned above), but I find that it is more convenient to manage remotely because all of the amenities are maintained by someone else. I don't have to deal with pool/ hot tub/ snow removal / trash pickup / gardening … Yet, my guests enjoy a well kept property with all these things. I am also able to contact the on site maintenance manager for small things like putting a package inside and he will give me a heads up if I my guests are parked in the wrong spot or being a nuisance. Also, if it is vacant and something catastrophic happens like a pipe freezing, it will be noticed and communicated quickly. To me, all this is worth the monthly assessment. I have been fortunate with lots of appreciation, but I can't speak to house vs condo appreciation.

In the end I would be open to both and go with the deal that is most attractive from a cash on cash return perspective. Appreciation is icing on the cake for all long-held real estate, but your STR should be producing returns for you right away.