PCB CONDO vs SFR

[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.

[Debbie James]

I am a Realtor in the area, my husband and I own a SFR in Laguna Beach, and we owned and operated a vacation rental company along 30A and the west end of PCB for about 10 years (Sold the company last year). That being said, there are some differences in SFR and Condos.

In general, figure 24-26 weeks per year for rentals. Northside of 98 won't rent short term. Too far to the beach. There is way to much competition. Ideally you want to be less then 1/3 of a mile to the beach. Ideally around 1/4. 

Keep in mind that you can't be all things to all people. Those wanting to be beach front, a home won't do. Those that don't want to deal with elevators and want their own space, a condo won't do. Regarding condos, definitely get onto VRBO.com and read reviews. Some complain that they had to wait 30 minutes to get an elevator, other complexes are fine. The larger the condo, the higher the association fees. There are now new laws in place, due to the collapse of the south Florida condo building, regarding the reserves the condo needs to have and getting maintenance completed. Make sure to ask if there are any special assessments.

For a SFR, the 'trifecta' for rentals is, pet friendly (dogs only), fenced yard and private heated pool. When we had our company, about half of the rentals were pet friendly. It is very hard for people to find 'nice' pet friendly homes. Condos do not allow guests to bring pets, only owners. Our rental is not a large home, 3/2 plus bunks (sleeps 8) and about 1,100 SF. Huge backyard, screened porch and updated. We are completely booked from now till early Sept and then about 3 weeks in the fall.

When looking at SFR in PCB, make sure the street allows short term rentals as some streets don't. All in all, it's going to be a personal preference as to whether you buy a condo vs. home. Do you want to use the property? If so, what fits your families needs?

I will also mention that we are purchasing a 1-bedroom condo in Port St. Joe. New construction, great location and that condo complex will allow guests to bring pets. I'm not against condos, but you need to decide what's right for you.

Hope this all makes sense and helps. Let me know if you have other questions.