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Old 04-22-2012, 03:50 PM
 
295 posts, read 237,090 times
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We built a 5 BR home with a great view of the water in Corolla in 1994 and sold it this year. We hadn't even completed it when the builder died unexpectedly and we found out he was in severe financial difficulty. That left the house open to the weather and unfinished for over 3 months before we found a new builder.

We recovered from that eventually but owning a home at the beach never was "living the dream," as we had hoped it would be. We rented it every summer and just took an open week for vacation, if there was one. The income projections from the realty agent never did match reality. Off-season rents declined in numbers as the house got older, but summer week rentals were almost always strong. However, we finally had to change agents to keep them that way.

We eventually moved to the house for the off-season period when I retired and we traveled during the summer months. I'd say that was the time we enjoyed the home the most, although there is always upkeep needed for any home. Even with an agent to help, I found myself working on the house myself when I would rather have been at the beach sitting under an umbrella.

I'd have to say we enjoyed it through much of the time we spent there, despite the expense of upkeep, realty commissions, and trying to keep the property updated to enhance rental income (we added a bedroom and billiard room/foosball room and a heated pool).

The kids loved being at the beach, but the house was never really a money maker. Still, it provided a fairly good offset to our expenses. It was also hard to "keep up with the Jones" at the beach, who were then building McMansions just to the south of us. All in all, I loved it too, but I don't think I'd do it again.

Scott
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Old 05-17-2012, 09:16 AM
 
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I see a lot about seasonal rentals in this thread but I don't see anything about yearly. What is the rental market for yearly rentals like? What areas in coastal NC are best for yearly rentals?
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Old 05-17-2012, 11:53 AM
 
Location: Sneads Ferry, NC
11,250 posts, read 19,764,244 times
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Originally Posted by ahathaway21 View Post
I see a lot about seasonal rentals in this thread but I don't see anything about yearly. What is the rental market for yearly rentals like? What areas in coastal NC are best for yearly rentals?
There would be a lot of demand for yearly rentals in Jacksonville and surrounding areas like Hubert, Swansboro, Sneads Ferry. Military families are typically on two-year tours. My doctor tells me her husband in the Navy is being transferred in June, and that the military seems to transfer many people in June. The officers and doctors make good tenants, but I think the younger enlisted people are riskier.

Otherwise, Wilmington would have demand for rentals by students at UNCW. Also retirees and newly transferred employees who are looking around before committing to buy.
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Old 05-17-2012, 12:00 PM
 
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Thanks goldenage1! Do you or anyone else happen to know the average time it takes to find renters in the Wilmington area?
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Old 05-17-2012, 12:05 PM
 
Location: Sneads Ferry, NC
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Originally Posted by ahathaway21 View Post
Thanks goldenage1! Do you or anyone else happen to know the average time it takes to find renters in the Wilmington area?
I don't have an average time, but a Realtor might know. I'm sure it depends on whether the place is a house or apartment, what condition it is in, and whether it is appropriately priced. I believe the students arrive in August for the school year.
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Old 05-17-2012, 01:37 PM
 
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Originally Posted by ahathaway21 View Post
I see a lot about seasonal rentals in this thread but I don't see anything about yearly. What is the rental market for yearly rentals like? What areas in coastal NC are best for yearly rentals?
The rental property I invested in is at Holden Beach. We looked at 3 years of rental history of all the homes we considered. We went in knowing if it didn't show at least 4% return on the money then the investment was not much better than leaving it in the bank for a 2% return(like most CDs today) We looked at ALL the expenses paid out in a 3 year period. The place rents solid from April -the end of October. We were able to get a few days this fall due to a cancellation in October. I think 2008 was terrible for the rental market due to gas prices and job loss but the last 3 years are booming again. The way I look at it and another poster expressed; people will always want to go to the mountains or the ocean to "get away". BTW there are still incredible deals to be found. Most homes we looked at were listed at 2mil and above in 2008 and then the crash , most listed at almost half but I do think we are at the end of seeing a glut of homes on the market at the coast.But for year round rentals Wrightsville is probably the best due to UNCW students.
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Old 05-18-2012, 05:55 AM
 
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Another thing to consider is lost revenue due to a storm. You mentioned that the unit is booked solid until the end of October. What if a storm comes through in mid August and rips a section of roof off the house? You've potentially lost two months of rental income. Can you cover the cost?

I cannot stress enough what others have said about maintenance. I don't own at the beach but have several friends who have. Be prepared. As one person said in a previous post, the HVAC unit will have to replaced every 5 years or so. This is no joke. The wind and salt air will wreak havok on anything metal inside and out.

I think that if you are doing this strictly as an investment, it's a mistake. There are better, and less painful ways to get a return on your money. If your buying a beach house because you want one for personal use and plan on summer rental income to help pay for it, it's a good time to buy.
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Old 05-18-2012, 07:36 AM
 
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They just replaced the A/C unit after 5 years. The units are not facing the ocean side which many are and some owners(us included) have part of the irrigation system aimed to rinse off the AC units when it comes on each morning to rinse it daily of salt etc. This just started 2 years ago so we will see how the new units do, I know some claim it has extended the life by 2+ years and they do this alot in parts of Florida. If a storm comes through we pay wind rain & hail insurance for a reason. It is a deep lot so somewhat protected from erosion etc. I have pics posted of the place in another thread asking about color if anyone is interested in seeing the depth of the lot, pics etc. But you are right..lots to be concerned about anytime your property or possesssions used for investment is placed in another person's hands.
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Old 05-18-2012, 10:05 AM
 
Location: North Carolina
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Originally Posted by goodgal View Post
Just talking to other renters I am finding pillows are the most replaced item. Renters take them for the trip home and sometimes even leave their old pillow behind.
Oh damn. That's gross

When we travel (usually by car but sometimes by motorcycle since I have a sidecar), I take my own pillow, sometimes a blanket. I know that sheets are cleaned, but don't trust that I might be using a manky old blanket that only gets washed occasionally. I absolutely strip the comforter off and set it aside.

I guess it's best that we are looking for a small RV to travel in. I get *squicked* too easy
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Old 11-27-2015, 08:08 AM
 
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Just an update. So far so good. We have had a good return on our investment of between 4% a year which is a heck of alot better than a cd in the bank right now or just leaving your money there. So far we have had good renters but we offer a welcome package where all sheets are on the beds, paper products , soap products provided. I feel like when we do this there is less likely a chance to have teen agers who never put sheets on the bed sleep on the bedspreads. Also it helps that the families who rent are willing to pay the price I am asking with the welcome pkg. Repeat renters are best because you establish a rapport with them and they seem to so far be honest .Only one instance of someoone swapping out a pillow and this is a 6 bedroom 6 ba house. We have had one issue arise a few times. Kids like to play on the home's elevator. Sometimes the alarm sets off the security system which in turn dispatches the police. This happened once and we put a sign inside stating this could occur so no more joy riding after that.
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