Build/Buy Vacation Rental in OBX (Corolla)

[Del Crockett]

Hey all,

Does anyone currently (or recently used to) own a vacation home in OBX (Corolla more specifically) that is willing to speak to a few items and general feedaback:

1. Vacation renal income norms over the last 2-5 years. ROI. Are you covering your cost consistently?

2. Impact (if any) of what seems to be a change in the weather patters (hurricanes reaching the area more often) *Thats not meant to be a factual statement, just seems like it. 

3. Type of insurance recommended to carry in a Zone X flood area.

4. And finally, if anyone has experience renting in the Corolla 4x4 area - does the beach driving impact your rentability? What's the general consensus? Are vacation renters nervous to rent up that far north without pavement roads?

If there are any other facts or things a potential new investor should consider with OBX - I welcome your thoughts.

Thanks

[Joseph Danza]

@Del Crockett to answer your questions

1) Ours does well. And covers our costs consistently to include a profit. Buy on the right terms and understand how the HOA works. Many HOAs in OBX are broke. Ask for the numbers.

2) Hurricanes come every year, a solid policy such as encouraging guests to purchase hurricane insurance helps mitigate the risks of loosing rental income.

3) In a condo, you'll need HO6 policy or a commercial policy that covers STRs. Make sure you have enough liability coverage. Master Flood Policy held by the HOA should cover flood insurance depending upon where your building sits. Not all properties are required to carry if they are in Flood Zone X.

4) As far as 4x4 locations, there are folks who come to this area every year who love those destinations. However, it limits the pool of folks and if a hurricane comes through often the roads may remain close for the day until they can be cleaned.