Investor · Tucson, AZ · Member since 2016 · 20 posts · 4 votes
My wife are thinking about investing in a vacation rental in St. Croix. The USVI gives us a chance for a normal loan with 20% down. The prices aren't too bad, but HOAs in condos are through the roof - $600 to $800 per month. And it would require local property management. It looks like a reasonable price/night would be around $150. But it only looks like a 50% vacancy rate. So possible income is $27,000 per year. So if the condo is $95000, total payment including HOA is $1240/mo of $14880 per year. Property management would cost around $2700 per year. So possible profit of $9420/year. Any opinions or knowledge of the area? Thanks.
Real Estate Agent · Portage, MI · Member since 2015 · 28 posts · 4 votes
10y
Just depends on various factors...if you are looking at it purely from an investment standpoint, I think it's just so-so. Much better returns available elsewhere. If you like the area, and plan on visiting and using it on occasion then it's a different matter. My preference is to seek investments in VRs, so I don't buy properties with high HOAs, and prefer to avoid those types of properties. I also prefer to manage my own properties, or hire someone by the hour to do cleanings, maintenance and errands.
Real Estate Agent · Raleigh, NC · Member since 2016 · 8 posts · 6 votes
10y
Utilities are very expensive on islands. Make sure you have a realistic budget for those if not included with your dues. I have looked online at condos there and the prices are great...there are other high costs of ownership to consider though. A/C units, appliances, furniture, all that is much more expensive. If your property gets outdated and you want/need to remodel, be ready to pay through the nose. This may be less of an issue depending on the setup of the condo, but definitely is a consideration.
If you love the island and want to be able to visit regularly and write off your "maintenance" trips go for it. If you are not going to be able to enjoy it much yourself its probably a high stress low reward deal for you. I always look at those places and then remember how much the plane tickets are and how long it takes to get to them, buying one even at a low price might not be worth messing with if I cant enjoy it.
Development Director · Boca Raton, FL · Member since 2016 · 29 posts · 22 votes
10y
We scouted St. John on a recent trip to Tortola...stunningly beautiful island and awesome properties, but insane asking prices. Numbers don't typically look great for investment, but if you can find even a 5-cap the owner benefits are tremendous if you and your family love it down there. We only considered SFH...so not too savvy on the USVI condo situation.
@Tom Albares Don't see any mention of insurance in your calcs...? Guessing common areas/exteriors are covered by condo dues, given the high HOA cost...but would your individual unit and personals still need wind/flood/homeowners coverage, which is quite expensive in the islands? Also, what are projected rehab costs, or is the unit you're considering turn-key?
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
10y
I couldn't get the numbers to come close to working in St. Croix, rentals rates are low and there seemed to be lots of inventory. I found some much better ratios in St. Thomas, still hoping to find the right place there.