All Forum Posts by: Candace Pfab

Quote from @Liam Alvarez:

Quote from @Candace Pfab:

Quote from @Liam Alvarez:

Hello everyone,

I’m considering investing in a short-term rental property in Gulf Shores, Alabama and wanted to reach out to the community here for some insights and feedback on the market. I’ve done some initial research, but I’d love to hear from anyone with firsthand experience or knowledge of the Gulf Shores rental market.

Specifically, I’m curious about:

• Occupancy Trends: How does demand fluctuate throughout the year? Is there a peak season, or does Gulf Shores have a consistent flow of visitors year-round?

• Rental Rates: What can I realistically expect in terms of nightly or monthly rates for short-term rentals?

• Local Regulations: Are there any important rules, taxes, or permit requirements for STRs in Gulf Shores that I should be aware of?

• Best Neighborhoods: Which areas tend to attract the most renters? Any recommendations on specific neighborhoods that have strong rental potential?

• Challenges & Opportunities: What are some common challenges that investors face in this market, and are there any unique opportunities right now?

If you’ve invested in or managed properties in Gulf Shores, I’d love to hear your thoughts on the potential of this market. Any resources, tips, or personal experiences would be incredibly helpful as I explore this investment opportunity!

Thanks in advance for any advice or guidance you can share!

We have been investing in this market since 2009 and have helped many BP members.  Happy to connect to see how we can help!

Thanks for reaching out! It’s fantastic to hear you have such extensive experience in the market—especially since you’ve been helping others navigate it since 2009. I’d love to connect and learn from your insights.

Could you share some of the trends you’ve seen over the years in terms of occupancy rates, peak seasons, and any shifts in demand? I’d also be interested in hearing about specific neighborhoods or property types that have been particularly successful for STRs. Any advice on local regulations or best practices would be greatly appreciated as well.

Looking forward to connecting and learning more from your experience!

We are a seasonal market, so prime season is Memorial Day to middle of August plus Labor Day weekend.  We do well with winter guests.  You can see 100% occupancy from beginning of January thru mid-March, but at lower rates.  Spring & Fall still book, but tend to be shorter stays than Summer & Winter.  Lots of festivals to attract guests most of the year.  Year round occupancy levels trend around 65%.  There has been downwards pressure on rates this year due to the economy.  Most recent report showed occupancy down about 8%, but Average Daily rate up about 1%.  Also hearing better than market results from those who are self managing as consumers continue to buck excessive fees by seeking to book direct.  Regulations are very stable here.  Anything outside of the beach zone which has been designated for vacation rentals is going to be challenging regulation wise & neighbor wise.  There is lots to discuss regarding property type.  Condos have a lower price entry point, but many are facing insurance assessments due to rising insurance costs, so that has to be reviewed carefully, but single family homes are seeing the same rate pressure unless very new construction.  Hope that helps!

Quote from @Liam Alvarez:

Hello everyone,

I’m considering investing in a short-term rental property in Gulf Shores, Alabama and wanted to reach out to the community here for some insights and feedback on the market. I’ve done some initial research, but I’d love to hear from anyone with firsthand experience or knowledge of the Gulf Shores rental market.

Specifically, I’m curious about:

• Occupancy Trends: How does demand fluctuate throughout the year? Is there a peak season, or does Gulf Shores have a consistent flow of visitors year-round?

• Rental Rates: What can I realistically expect in terms of nightly or monthly rates for short-term rentals?

• Local Regulations: Are there any important rules, taxes, or permit requirements for STRs in Gulf Shores that I should be aware of?

• Best Neighborhoods: Which areas tend to attract the most renters? Any recommendations on specific neighborhoods that have strong rental potential?

• Challenges & Opportunities: What are some common challenges that investors face in this market, and are there any unique opportunities right now?

If you’ve invested in or managed properties in Gulf Shores, I’d love to hear your thoughts on the potential of this market. Any resources, tips, or personal experiences would be incredibly helpful as I explore this investment opportunity!

Thanks in advance for any advice or guidance you can share!

We have been investing in this market since 2009 and have helped many BP members.  Happy to connect to see how we can help!

Quote from @Paul Broussard:

@Candace Pfab, hi I'm interested in an out of state 1031 exch to gulfshores area, STR. Any experience with this on your end?

Hi Paul.  Yes indeed.  Many of our buyers & sellers use 1031 exchanges.  Let's set up a time to chat!  251-600-9214

Quote from @Natalia V.:

Quote from @Candace Pfab:

I know the community you are talking about & have sold in there, so happy to help in any way.  Do not skip on insurance.  It's relatively inexpensive on new construction like that & I can connect you with a great insurance agent here.  We have owned investment property in Orange Beach since 2009.  Feel free to reach out!  We have helped many BP investors in this area and have many resources that may be helpful to you!

What’s your honest opinion, is that subdivision a good investment?

I think it can be a good investment for the right buyer with strategies for setting it up to stand out to potential guests, the right property management and appropriate expectations.  It takes some time to gain traction as a new rental & it sounds like you will not be able to launch the rental until after prime Summer season, so you will need to be prepared for that as well!  During the Fall season, you will see shorter stays of 3-4 nights vs weekly rentals like Summer and January-mid March will be monthly rentals typically.  I have seen some healthy snowbird rental numbers at that community!

I know the community you are talking about & have sold in there, so happy to help in any way.  Do not skip on insurance.  It's relatively inexpensive on new construction like that & I can connect you with a great insurance agent here.  We have owned investment property in Orange Beach since 2009.  Feel free to reach out!  We have helped many BP investors in this area and have many resources that may be helpful to you!

These are all great comments & I couldn't agree more.  As an investor, I think Dauphin Island is too risky with the erosion and other issues.  One thing that wasn't mentioned is that the road leading to many of the homes often floods making a good portion of the rental homes inaccessible during storms & also resulting in early evacuation due to storm threats.  We specialize in working with out of state investors, so happy to chat any time!

It was a true honor and pleasure to help you & Mike!  We look forward to your continued success in this area!

I can help you explore the Gulf Shores, Orange Beach & Perdido Key FL markets.  We have been investing in this area since 2009 and have helped many BP members acquire short-term rental property here.  Happy to connect & see how I can help!

Quote from @Derek Fike:

Quote from @Chris Seveney:

@Derek Fike

Goes back to the #1 rule of real estate - location

We saw FOMO and everyone throwing a STR up even in residential neighborhoods which are bedroom communities. Not really a great place for one whereas if you are near water/entertainment or something worth while then it can be a great investment.

 I agree with you! This is what is drawing me to Gulf Shores/Orange Beach, AL. This is a hot spot for tourism with beautiful beaches and great entertainment/events. I live in Colorado and would like to purchase my first rental here, but it seems too risky with all of the upcoming restrictions and potential quadrupling of lodging taxes.

Hi Derek!  We started investing in STRs in the Gulf Shores/Orange Beach area in 2009 & have helped many BP members buy their first one here.  Happy to walk you through the market details here if you want to send me a message or reach out.  You can check our reviews & properties we have sold here by clicking on the Reviews & Deal tabs at the top of our company profile:  

Pfabulous Real Estate/eXp Realty | BiggerPockets

This report was released last year, so it may be a bit outdated. Vacasa usually updates their list around March each year, so expecting the 2024 list soon. With that being said, we have been investing in the Gulf Shores area since 2009 and have helped many BP members invest in this area. Most of our buyers are more concerned with COC or cash flow vs Cap rate, but this doesn't look out of line for our market with professional management factored in. Vacasa typically charges 20% here, but more at least half of our buyers self manage.