Key West Resident Looking For Help

[Todd Connelly]

My wife and I are full-time RV enthusiasts, and brand new RE investors. We only have one rehab to brag about. It was a four-plex we flipped back in 2011. We didn't make a ton of money, but were surprised at how the minimal repairs increased the value, and how fast we actually sold the units!

These days, we live in our 40' motorhome, full-time, and work in RV resorts across the country. We are park hosts, reservation agents, etc... basically whatever is needed by the park. We've been working at a park in Key West for about six months, and recently began to look into investing in this area. I sense opportunity here.

But, Key West is an odd duck, for sure. It is overrun by tourists for most of the year. The only slow times appear to be from August thru October. You can count on a hurricane every few years, so home insurance is sky-high. And, the town is party central (for those not familiar).

When researching the Airbnb potential, I found that there is a 28 day minimum stay requirement... so, I don't know if that would be a good fit or not. Hopefully, someone reading this will be more familiar with the area and be able to offer some investment tips.

So, if you were physically living here in the area, and had a background in construction/remodeling, how would you approach RE investing? I feel like there is opportunity here, but just can't put my finger on the best approach!

Thanks for any input!

[Megan T.]

I worked on an apartment investment in Key West, and it is definitely an odd duck. Rehabbing costs can be ghastly expensive in Key West since everything has to be brought down to the island. If you are using materials like granite or drywall the cost of shipping it down from Miami can be as much as the materials. After Irma, there are definitely deals to be made in the keys, just make sure you are getting a sound house. The insurance on anything frame construction would be too much, so focus on concrete block.