Panama City Beach Vs Destin?

Question

Looking in these two areas. Will self manage. Family has a house in Destin so that is ideal for us personally but it looks like we can afford something a bit nicer in Panama City.

Anyone have experience in the area? Which rents more?

Thanks!

Ramsey Blankenship · Answer

Rents will be higher in Destin however your cashflow will be better in Panama City. Destin is pricey, however it is a much more progressive town with new development consistently popping up. I would personally rather LIVE in Destin.

Panama City however, is a very strong rental market. The place is a bit slummy, however the city is bringing in some development contracts to make the area more family friendly and get rid of the spring break vibe.

The city side (east of the Hathaway Bridge) is planning to revamp the downtown marina in a huge way (http://www.newsherald.com/news/20160823/new-look-r...).

Panama City Beach is also working on making the city family friendly with the alcohol ban on sandy beaches during spring break months. They are also under construction for a very large youth sports complex which will bring year round travel teams and their families to the area for sports (http://www.visitpanamacitybeach.com/sports/new-spo...)

Eastern Shipbuilding also just received a $10.2B contract to build Coast Guard Cutters which will bring 2,000 more jobs to the city side (http://www.wjhg.com/content/news/Eastern-Shipbuild...)

My recommendation would be to put your money in to Panama City and on the city side. Specifically St. Andrews and/or the Cove areas. There are plenty of multi family homes in those areas however as of lately investors have been gobbling them up. These are, and will be the desirable rental locations. I own 12 Units, seven in St. Andrews, three in the cove, and two in the hood. All of my units stay occupied at around $650-$750 for a 1/1.

Hope this helps.

Luke Carl · Answer

I'm quickly learning neither one of these places will work for me. Need to be a cash buyer to make the numbers work, at least compared to my other vacation rentals. Unless you don't want to be on the beach but then whats the point really.

Ramsey Blankenship · Answer

The $650$-$750 i am getting are for 1/1 on the city side and long term rentals. Condos on the beach will rent for MUCH higher. Likely $1,200+ depending on amenities but im not sure.

Condos come with alot of unforseen expenses, however people make them work. If you are looking to AIR BNB, reach out to @January Johnson

She is a local RE agent who does AIR BNBs herself, knows quality cleaning companies, and can guide you into which places would rent best

Ramsey Blankenship · Answer

Thanks for the feedback @Cain McNeil. Feel free to send me any investment properties you come across. I am interested in multi family.

Cain McNeil · Answer

@Lucas Carl- Scott is right, many local lenders can make things happen in regards to our condo market that others cannot. If you still need any advice I have a handful of them that can help out.

Scott Richter · Answer

Lucas I cannot self promote here, but I can help you find someone if we can connect another way.

Luke Carl · Answer

@Scott Richter

We have figured that out after getting under contract. Have one lender that has not told us no yet. The rest are not even close to the ballpark even the local lenders. If you have any suggestions on who to call I'm all ears. That's what I'm doing this morning. Thanks

Scott Richter · Answer

I have been in the mortgage financing industry for the last 22 years, of which the last 18 has been in the Panhandle of Florida. To maximize your investment and create the most positive cash flow I think there are many more properties to look at in Panama City versus Destin to achieve this goal. One thing I strongly suggest however since you are looking at condos is if you are not paying cash for it, then you better align yourself with a mortgage lender that has vast experience in the Warrantable & Non-Warrantable condo market. The lending terms between those two can be vastly different, and units in some projects cannot even obtain financing unless you seek hard money. I cannot tell you how many customers we speak with from Nashville, Birmingham, Atlanta, etc. that think they have their financing lined up with their local banker only to learn at the 11th hour that they cannot finance your unit because the condo is not warrantable and now their down payment went from 10% to 30% or sometimes more. So if you need financing on any condo along the Florida Gulf Coast, do your homework and I would advise you work with a local lender that knows the condo market and all the intricate details of condominium financing.

Peter G. · Answer

Panama City Beach real estate is cheaper than Destin which allows you to cash flow if the property is bought properly.

Cain McNeil · Answer

@Lucas Carl - I would love to help you in search for an investment property in this area. I myself am a local investor/agent/lifetime native. I have experience with long term buy and hold, vacation rentals and rehabs. Feel free to reach out!

@Ramsey Blankenship  - excellent info for people interested in our area- well done!

Panama City Beach Vs Destin?

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