All Forum Posts by: William Anderson

Hello everyone.  Perhaps I can interject a suggestion.  My market, the Mississippi Gulf Coast is a year-round destination.  I specialize in working with out-of-state owners to locate, buy and manage vacation rentals.  Most of our coastal cities permit vacation rentals so no problems with codes.  You can buy a new build on the beach in the low $400,000 range or a block or two in for between $250,000 and $350,000.  

I own several properties here and most are generating COC in the 15-30% range. The high season is June/July. Shoulder seasons are long and the Spring is good. Mardi Gras brings people here along with many very large events. Our highest week in the year is the first week in October when a backyard shed can get $300 per night (just kidding but close). Our property taxes are low, and state income tax averages about 4%. Lowest gas prices in the nation (Texas may be lower). The cost of living is one of the lowest anywhere.

Visit my blog site RetireCoast.com to read about the area.  We have a selection, of a few highrise condos, but not many spoil the beaches.  Single-family homes primarily.  A few duplexes but not many in desired areas.  Some homes built between 1900 and 1940 make excellent vacation rentals, and people like the "cutie" vibe.

You can get a general feel for the pricing by going to my real estate website at LoganAndersonllc.com

Chris, 

I own and operate quite a few vacation rentals in my market along the Mississippi Gulf Coast.  I also help people buy houses and work with them to make the conversion.  The most difficult questions for anyone not already an owner is how much will I earn and when? If you are considering buying this as a full-time income-generating property, Chad is correct, you may want to wait a bit.  2021 was an extraordinary year and because it was, lots of people wanted to jump in.

There is nothing I would rather do than help someone get into a vacation rental and that means buying it, setting it up, and managing it for them.  But, I do not want to be on the other end of a call when the new owner calls and wants to know where the income is.  The fact is that 2022 is shaping up to be an average year.  There is more competition in my market but much of it is from people who decided to open their existing property to make a few dollars.  These will come and go over time.

Back to your original question.  Before I bought the first vacation rental, I met in person with several people who owned multiple properties.  They had no problem sharing information when they knew I was a professional and here to stay, not just in town fishing around for information.  As a result of those discussions, I have several great friends now that discuss with me regularly the status of rentals in their portfolio.

We often contact each other when for example I am booked and have a previous guest who wants to come down.  They do the same thing.  We all want to accommodate our clients.  You may want to do the same and gather some good data before making an offer.  And, I strongly suggest you find an agent who knows vacation rentals, it is a specialty business.  One more thing, keep an open mind about where to buy.  The world is your oyster, buy anywhere and get a good property manager.  I owned many properties on the Med coast in Spain and had great success.  I in manage properties for people who do not live in my area.  It's all about the money.

Kenisha,  let me start by saying I am a broker.  Long before I became a Realtor, I bought many types of properties including multi-family.  Most builders will not give a concession to someone who comes unrepresented.  This is one consideration.  Another is that you need to find an agent experienced in the type of property that you want to buy.  Look through the internet and contact the broker at the firm and ask the broker to refer you to someone with this expertise.

I was an expert in multi-family long before I became a real estate agent and then broker.  Part of what I can offer is a better set of eyes on build quality and things the builder may concede to include.  And, that expert is free to you.  

Should you go it alone in this litigation-rich environment, you will have no help if something goes wrong.  Just a few things to consider.