The “sweet spot” for OBX rentals

[Walid Yassir]

I understand that for OBX rentals, oceanfront is critical for maximizing revenue. My question is whether or not there are other optimizing factors, such as number of bedrooms. Is 6 or 7 the minimum to have access to the largest pool of renters? Looking to spend around $2M - is there an advantage to building?

[Herman Hall]

As a resident and fellow investor in the Outer Banks I can tell you the ocean front rental market is very competitive. The upgrade bar that commands the high rents is constantly being raised. Home theater rooms, multiple kitchens, the greatest number of Master suites, pool and pool house quality, game rooms etc. are all factors and now homes are adding amenities such as beach chair service packages. $2M will definitely get you in the game, but be prepared for very high maintenance bills and required CAPEX to keep the house in the market to get the highest rents. Also one ill timed hurricane can really screw up your cash flow.