Rental Property Investor · Member since 2022 · 3 posts · 1 vote
Good Morning,
My name is Ben Adamo and I currently have a few long term rentals up in the Northeast. I am coming down to the Fort Walton area for work in the next few months and will be making these trips for the next few years. I am considering purchasing a STR so I can stay there when I am down for work and then rent out when I am not. I not really know much about how short term rentals and/or how the market looks in the area for something like that. Any advise, info, points of contact would be greatly appreciated as I am trying to build out my network and would like to meet and potentially look at places while I am down there during July/August timeframe. Thank you all in advance!
Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 143 posts · 114 votes
3y
Hey @Ben Adamo! Stoked to have you down on the Emerald Coast from time to time over the next few years. I do both - I have a few LTRs down here as well as an STR in Destin. There is no question that the STR has phenomenal numbers - if you advertise right and your expenses aren't too crazy, you can make some extremely good money in the Florida Panhandle on STRs. I will say though, this is a very underrated area for LTRs. You can find homes in the $300s that rent for $2500+. I just leased my home that appraised at $331K for $2500 - even with my refinance at 7.5%, it cashflows about $500/mo.
In short - both methods are great for this market. I'll shoot you a PM and am happy to link up and chat when you're here!
My name is Ben Adamo and I currently have a few long term rentals up in the Northeast. I am coming down to the Fort Walton area for work in the next few months and will be making these trips for the next few years. I am considering purchasing a STR so I can stay there when I am down for work and then rent out when I am not. I not really know much about how short term rentals and/or how the market looks in the area for something like that. Any advise, info, points of contact would be greatly appreciated as I am trying to build out my network and would like to meet and potentially look at places while I am down there during July/August timeframe. Thank you all in advance!
Morning, Ben! I sent you an IM! I also would tell you to pick up Short Term Rental, Long Term Wealth, by @Avery Carl. She's the Queen of STRs. Let's discuss when you get down here- you're going to HAVE to buy once you get that sand in between your toes!
Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 143 posts · 114 votes
3y
Hey @Ben Adamo! Stoked to have you down on the Emerald Coast from time to time over the next few years. I do both - I have a few LTRs down here as well as an STR in Destin. There is no question that the STR has phenomenal numbers - if you advertise right and your expenses aren't too crazy, you can make some extremely good money in the Florida Panhandle on STRs. I will say though, this is a very underrated area for LTRs. You can find homes in the $300s that rent for $2500+. I just leased my home that appraised at $331K for $2500 - even with my refinance at 7.5%, it cashflows about $500/mo.
In short - both methods are great for this market. I'll shoot you a PM and am happy to link up and chat when you're here!
It's a great area to invest. I moved here from Memphis 6 years ago. You'll find more real estate agents than properties though, lol, so I suggest do your own math and double-check all projections from independent/uninterested sources. Yes, I'm an agent too, but I try to not be "salesy" when on Bigger Pockets. I know people are here for independent advise and not sales pitch :-).
I have 4 short term rentals in Fort Walton Beach that I manage myself and they are doing well. However, there is definitely a slowdown since 2021-22 and rents are down back to more normal 2019 levels. There is also some oversaturation of vacation rentals all over the Emerald Coast. That is not to say getting an STR is not a good idea. In fact, now might be a good time to get a very reasonable deal as long as you are not expecting some crazy immediate cash on cash return :-). Also, I would suggest consider properties with a move versatile function. For example SFR or townhomes that can pivot from STR to LTR if needed and that would be easier to resell if needed. Location and proximity to the beach and attractions is definitely critical. Another thing that you need to check very, very carefully is to make sure that the area where you buy allows STR and there are no upcoming restrictions being considered (like in Mary Esther). Don't rely only on hearsay or an agent. Do your own due diligence research.
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y
Be careful when it comes to financing and occupying the property part time versus renting it out when you are not. DSCR loans for example consist of loan docs that state that the guarantor can only occupy the property for 14 days or less within a year.
My name is Ben Adamo and I currently have a few long term rentals up in the Northeast. I am coming down to the Fort Walton area for work in the next few months and will be making these trips for the next few years. I am considering purchasing a STR so I can stay there when I am down for work and then rent out when I am not. I not really know much about how short term rentals and/or how the market looks in the area for something like that. Any advise, info, points of contact would be greatly appreciated as I am trying to build out my network and would like to meet and potentially look at places while I am down there during July/August timeframe. Thank you all in advance!
Hi Ben, which price points are you considering? Are you wanting something that needs work or turn key? How often are you wanting to use it a year? Do you have a desired return on cashflow or equity?