Where are we in the Real Estate Market Cycle...Tybee & Wlmngtn?

Question

Is Wilmington Island / Tybee typically a good market for buy and hold cash flow properties because it seems like the good deals are very hard to find....everything seems WAY overpriced. Are we at the top of the market or are prices always this high here relative to what the property is actually worth?  It seems like for every opportunity we investigate, there is no money to be made. We are pro members of bigger pockets and most of our property inquiries using the Rental property calculator indicate that the Pro Forma Cap rates are way too low (out of range to generate good cash flow)  and CoCROI rates are too low as well based on the asking price of the owner.  We put in what we would offer into the rental calculator, but doubt that the seller would accept.... Any help on this topic would be appreciated.

Account Closed · Answer

Tybee is good for short term rentals, and Wilmington is better for long-term rentals.  You may also want to check out Pooler.

Kathryn Sukkestad · Answer

Thank you for your helpful input!!! I will consider all these things when deciding to purchase!!!

Michael Lee · Answer

Hello and welcome to this website! That is a good question and you will get two or more different opinions.  It is almost impossible to where we are at.  I think we are at the top of the market that favors sellers.  To get any deals that are with investing on will need a bunch of work with a motivated seller.  Somehow you have got to figure on making more offers that will increase your chance of getting your offer accepted.  A little luck will be there too.  You might have to change markets, your niche, profit margin, harder work, etc..  You might to save up as much money as you can so you will be ready when the market goes down.  Make sure whoever you shop that the economy is diverse and the population is growing.  Talk to experienced Agents and the Chamer of Commerce to get a feeling on the best area and where it is headed.

Try to stay within an hour drive from home and try stay as close to a town as you can.  The better exterior overall look of all houses in that neighberhood should help you on the resale.  Just do what is average for the neighberhood  that you have selected and has good potential appreciation.  I know that you should look at that as a maybe.  Do what is most popular in your market.  You might want to go to an area that is having the most sales.  Do not look at the competition as anything like something that is negative.  Some of them could be your friends.  Be a dominant competitor in that selected market.  I am 60 years old and tend to be very opinionated.  Even though I do not have much experience in real estate but I did have an active real estate brokerage license for about 25 years but never did that full time.  I have been in   business the construction business  since I was 17 including those college years.

I do not know your personalization it makes it a little difficult to tell you exactly what to do.  Any offer is worth your time because you never know what the seller will say.  I think that the coastal communities are generally pretty good.  Remember that making money in real estate has been successful for 200 years and is a long term profitable item that is not made, usually, overnight and takes hard work and being smarter than the others doing it.  That does not mean to invest differently or improve differently.  Be creative and spend more time with the seller and try to build a good reputation.

Make your decisions based on the present, not the past or the future.  Both the past and future could help you but just do what you have control over.  Outside amenities can help you.  Things like bus stops, lakes or oceans that are within walking distance, retail shopping, parks, etc., will help when it becomes ready to sell.

Good luck to you!

Kathryn Sukkestad · Answer

So would you say these markets are at the top of the market cycle?

Where are we in the Real Estate Market Cycle...Tybee & Wlmngtn?

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