STR/Vacation rental NW Flordia

[Justin Aldred]

I was having a discussion the other day with someone who said that Northwest Florida (especially more of the luxury areas around 30a) are more of a "capital appreciation" play and that It's impossible to get good cashflow in the luxury areas. Is this true? My thought is even with high and low season there has to be a way to generate good cash flow in this market and that maybe the houses are over-priced and have not been re-priced for the current interest rate environment.

My question: Are homes just overpriced or is it normal to have crappy cash flow in this area?

(for example the area we're looking at a house producing 100k in income asking 1.2million) when you factor in taxes, maintenance, cleaning, etc that barely breaks even or even looses a bit.