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Panhandle Condos..... Rent or Buy?
Posted on 7/6/14 at 3:26 pm
Posted on 7/6/14 at 3:26 pm
There's quite a few on zillow around 150k or cheaper.
To rent a nice condo, 150k could buy you 4 weeks, say 2 in the summer and 2 in the winter, at $1500 a week, for 25 years.
No HOA, if you didn't like something, you rent a different one next year, flexibility, etc.
But if you buy one, how much of your mortgage and hoa would be paid by renting it out? Paying for maid service, etc. Say you wanted to block out 2 weeks in the summer and 2 weeks in the winter for yourself, do you really end up getting it for "free" by renting it out the rest of the year?
Anyone here done this?
Another positive I suppose, of buying, is that maybe in 10 or 20 years the unit is worth 5x what you paid for it, but I try to keep that out of the equation because I know enough people who were overnight multi-millionaires down there until around 2007 or so.... they were greedy and kept reinvesting after flipping and ended up broke.
If I bought, it wouldn't be as an "investment".
It would be a toy. Any money made off it would be a bonus.
Someone talk me out of it.
To rent a nice condo, 150k could buy you 4 weeks, say 2 in the summer and 2 in the winter, at $1500 a week, for 25 years.
No HOA, if you didn't like something, you rent a different one next year, flexibility, etc.
But if you buy one, how much of your mortgage and hoa would be paid by renting it out? Paying for maid service, etc. Say you wanted to block out 2 weeks in the summer and 2 weeks in the winter for yourself, do you really end up getting it for "free" by renting it out the rest of the year?
Anyone here done this?
Another positive I suppose, of buying, is that maybe in 10 or 20 years the unit is worth 5x what you paid for it, but I try to keep that out of the equation because I know enough people who were overnight multi-millionaires down there until around 2007 or so.... they were greedy and kept reinvesting after flipping and ended up broke.
If I bought, it wouldn't be as an "investment".
It would be a toy. Any money made off it would be a bonus.
Someone talk me out of it.
7
Posted on 7/6/14 at 3:43 pm to deeprig9
The boyfriend's family owns a condo down there. They recently got it paid off so now it's turning a small profit for the first time ever. It's great to be able to go down any time we want and not have to pay for a hotel though.
Posted on 7/6/14 at 3:48 pm to deeprig9
Condos are glorified apartments that are purchased, not rented. I'd rent FWIW.
Posted on 7/6/14 at 3:51 pm to Phat Phil
My bil has one and a cabin in the mountains. He turns a profit on both and uses them quite often.
He also has enough money to cover any large emergency which may come up with the property.
He also has enough money to cover any large emergency which may come up with the property.
Posted on 7/6/14 at 3:52 pm to deeprig9
quote:
If I bought, it wouldn't be as an "investment".
Never put more than a few thousand in something that is not an investment.
My house is an investment. A lot of people balk at that because of the housing bubble, but those people are short sighted. All investments have risk, and no low risk investment ever produced a great return.
Posted on 7/6/14 at 8:21 pm to deeprig9
quote:
There's quite a few on zillow around 150k or cheaper.
To rent a nice condo, 150k could buy you 4 weeks, say 2 in the summer and 2 in the winter, at $1500 a week, for 25 years.
No HOA, if you didn't like something, you rent a different one next year, flexibility, etc.
But if you buy one, how much of your mortgage and hoa would be paid by renting it out? Paying for maid service, etc. Say you wanted to block out 2 weeks in the summer and 2 weeks in the winter for yourself, do you really end up getting it for "free" by renting it out the rest of the year?
Anyone here done this?
Another positive I suppose, of buying, is that maybe in 10 or 20 years the unit is worth 5x what you paid for it, but I try to keep that out of the equation because I know enough people who were overnight multi-millionaires down there until around 2007 or so.... they were greedy and kept reinvesting after flipping and ended up broke.
If I bought, it wouldn't be as an "investment".
It would be a toy. Any money made off it would be a bonus.
Someone talk me out of it.
They are normally not really a profit turning investment. You will only really have consistent renters in the summer. Of course, you can overprice the hell out of it during that time but it's not really a profit margin that will out weigh your mortgage. I know some people that do it and once you pay it off you can turn a small profit while paying for someone to manage it for you. Just remember, the people that will be staying in panhandle condos are typically going to be partying so it's something that could be a headache. For the right price, it seems like it could be a nice little investment property depending on location and proximity to the beach. Destin Florida and places like that. Also, you could always come do some fishing if you owned one making it a nice little vacay spot for yourself if you have expendable income. :)
Posted on 7/7/14 at 3:07 am to deeprig9
quote:
Anyone here done this?
Yes.
Firstly and foremost you need to decide on location, location and lastly location, then take a trip and look over another spot outside of the region you were thinking about like say, St. John down in the US-VI.
The rest is just the usual finance and details you can't fix location well you can but, you don't want to be one of those people.
Posted on 7/7/14 at 12:49 pm to BarberitosDawg
make sure you study up on insurance. Insurance alone will kill you.
Posted on 7/12/14 at 7:52 pm to BarberitosDawg
bmp....
Posted on 7/12/14 at 9:17 pm to deeprig9
1) If you buy it, the insurance can be a bit on the rough side.
2) Hurricanes routinely inundate/blow away coastal structures.
3) If you rent it out, the renters break everything inside of it.
2) Hurricanes routinely inundate/blow away coastal structures.
3) If you rent it out, the renters break everything inside of it.
Posted on 7/12/14 at 9:21 pm to deeprig9
Best plan for us is to visit sister and bro in laws condo in Gulf Shores right on the beach.
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