Investing in Destin,FL...Advice?

[Account Closed]

Hi everyone, 

I’m currently a NJ resident and have been looking to invest in some property and unfortunately in NJ the taxes are ridiculously high and there’s really no return on investment here. I’m looking for some advice on owning in Destin, FL. Does anyone have experience owning here and if so would you mind sharing where about your property was ? I am working with a relator but I’d like to gain insight from other investors. Also, if anyone knew if my mortgage rates would be higher if I used it as a rental and how hurricane insurance works. 

I am leaning towards renting it as a vacation rental and using a property management company to manage it. 

[Jennifer Wilson]

Hi @Account Closed,

That's very exciting to hear that you're looking in our area to invest!  As Share and Matthias said, Destin is a great area to invest and there are still opportunities for great returns.  I do want to add a couple notes to piggy-back on what other people have said though!

I'm sure your agent is aware, but if you're looking for a STR, the property will need to be located South of Hwy 98. I'm sure that most of the STRs you're looking at are already located there, but in case you saw a couple other options sprinkled throughout Destin that are further North, I wanted to make you aware that recent city ordinances have put a stop to STRs in neighborhoods North of 98 (for the most part). If you find one further North, it would be worth diving deeper into HOA rules and city rules.

Secondly, when you're talking to your insurance agent, ask if there are different prices on premiums based on fluctuating your deductible for the "all other perils" deductible.  Although you only have one premium, there are technically two deductibles; one for hurricane damage which is usually 2%, and one for all other perils.  I have seen some companies be able to lower the yearly premium if you opt for a higher deductible, and vice versa.  It may be worth asking in case it makes a significant difference in your numbers and/or comfort level!  

Finally, if you're on the ground level, I always recommend flood insurance, even if the property technically doesn't need it! (Flood zone X)  It is well worth the $450/year for peace of mind, and if something does happen, you'll be glad you have it!  (Speaking from experience).

If there's anything else I can help with, please don't hesitate to ask!

Good luck and happy investing!! :)