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Old 06-02-2016, 03:07 PM
LLN
 
Location: Upstairs closet
4,981 posts, read 8,741,524 times
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The decision should be based more on your temperament than dollars. I could not take the petty crap that people do to beach houses. I know my limitations! The advice above about getting a beach house because you want to use it is the best!
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Old 06-02-2016, 03:23 PM
 
Location: Sneads Ferry, NC
11,250 posts, read 19,764,244 times
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Quote:
Originally Posted by otterhere View Post
I still see ads for reasonably priced oceanfront condos at Myrtle Beach that boast rental income of up to $20k a year; it's hard to see how you can go wrong with that investment? And I am still considering it.
Check what the expenses are for HOA and/or condo fees fees. I have seen condo fees over $1000/month. That eats into the gross income of $20K.
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Old 06-16-2016, 02:09 PM
 
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So much naivete in one thread. As a real estate professional, beach properties especially single family is one of the absolute worst 'investments' you can make. People in this thread are likely not adding up all the true cost of ownership such as flood insurance, wear and tear from renters, depreciation, large item replacements/maintenance, HOA fees, management fees, etc. You need to be thinking about gross annual rental income or gross monthly income as a percentage of purchase price as a benchmark. Beach homes always have a low low low GRM because everyone wants to live at the beach. Example, buy one 1mil beach house and rent out for $10k per month or 10 single family homes in town for 100k each and rent for $1000/mo. Which is more likely to be fully rented all the time? If you said the former, i can give you my contact info for some easy brokers commisions
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Old 06-16-2016, 02:54 PM
 
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You have insurance, depreciation, large item replacement costs, HOA fees, etc., even if you just live there yourself. Surely renting it out for $20k a year helps defray those expenses...
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Old 06-16-2016, 03:41 PM
 
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Then why buy at all if you wont be there?
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Old 06-16-2016, 03:45 PM
 
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I would be there half the year, rent it out half the year.
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Old 06-17-2016, 07:16 AM
 
49 posts, read 45,454 times
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Then you need to know what times of the year exactly. If you will be there in the good summer months then the property definitely doesn't work from an investment standpoint. Almost all your income will be made between June and August. In the Wilmington area, vacation rentals will be done through the summer then off season rentals per month in the winter. Sounds like you are trying to justify the purchase with dreams of rental cash flow that just isnt there.
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Old 06-17-2016, 07:17 AM
 
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Right; obviously I would be renting it (and traveling) during peak vacation season. I'm not COMPLETELY stupid.


I want to -- and can afford to -- live at the beach, with or without rental income, but why not get rental income?


SMH!


Much more nave people buy a second/vacation home on the water several times a week on HGTV.
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Old 06-17-2016, 09:36 AM
 
Location: Raleigh, NC
132 posts, read 159,175 times
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What people are saying is, let's say you get $20k income. After expenses, repairs, replacing missing items, let's say you have less than $10k profit. Maybe it's $5k. Maybe it's 0 or worse. Is that worth it? Having to deal with all the issues that arise from dealing with rental property?

I have not heard anyone that says it is a good investment here. Maybe places like Florida where you can rent year round.
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Old 06-17-2016, 09:44 AM
 
7,790 posts, read 4,378,976 times
Reputation: 11568
You have expenses no matter what you rent out. Even if you just break even with the rent, at least you still own the property and, if you use it at all, that's a vacation you don't have to pay for. I don't know why it's a bad proposition as long as you're not LOSING money on it...
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