Future snowbirds wanting to buy now and rent/move when we retire (Port Charlotte: sales, real estate)

[Baby Boomer]

Hello all!

I found this website and wonderful forum today! Me and my husband are in our early 50's and not retiring for approximately 15 more years. We would like to be snowbirds in the future and were thinking of buying now, with the intention of renting weekly/monthly or yearly based on what would be the most financially rewarding. Buy now and when we retire be "snowbirds" in the winter and live in central Virginia where we currently reside in the summers. We were wondering what areas would be best for maximizing rental potential, as we would like to pay the majority of our mortgage this way until the house is paid for. We would like to be on a canal since my other half loves to boat. So our questions are:
1. Where is the best area for good rental potential?
2. Is it a good time to buy now in Florida? I was concerned that there is a lot of inventory and houses are sitting on the market for years.
3. We want to buy in an area that is safe, clean, and not too rural.

Any help and suggestions would be much appreciated. We are looking to spend less then $300,000.

[MikeM8560]

charlotte county will have what you want I cant help with any real info but there can be found canal property in that price range.

[Sea Ray Mark]

My wife and I just bought a canal home in Punta Gorda Isles on 12/20/13 and we're in our mid and early 50's and we plan to semi retire in five years. I think the real good deals are going away and there doesn't seem to be many foreclosures left in the area. I don't think you can beat this area as far as being a clean, safe and friendly town with plenty to do. As far as rentals go I'm not sure about annual rentals but the the short term winter rentals seem to be pretty easy to do. Not sure if it was just luck but I found a winter renter before I even bought the house. The up side is I have the house rented to good people that paid in full up front. The down side is I just came in from shoveling snow in South Jersey. Good luck with your search. Mark

[mr&mrssunshine]

please think very carefully...we know/have known a number of Brits who bought homes and thought the rents (primarily vacation) would cover their mortgages.

the guide figure is that most are happy if they rent out for 26 weeks out of 52

you need to factor in all the expenses of owning a home like
taxes
water/power/tv/phone/internet (vacation rents require these)
insurances
a management company to look after the home

before you even pay your mortgage

do your figures as I have seen too many people lose their homes because the 50 week a year promises of the sales people were totally tosh (that's a polite word for cr@p)

[MartyGras]

Good luck with your search, like Sea Ray Mark we are also in our mid 50's and purchased in Punta Gorda in March last year with the idea of a 5 year plan. Unlike Sea Ray Mark I am currently down here so I did not shovel snow today.
If you are going to buy I believe now is still a good time inventory is not very high and prices are rising.

I would doubt that you could rent the house and cover all of the expenses as had been previously stated but you could probably put a pretty good dent in it.

It's a funny thing we started out with a 5 year plan and it will probably be 3 or less, we will not be retiring but
Our jobs allow us to relocate without and reduction of income then add it no state income tax, taxation of retirement income and low property taxes I wish we could do it tomorrow.

Gary

[TamRE]

There are very few homes left in Punta Gorda Isles on a canal under $300k. There are more in Port Charlotte. Below are some links to both areas.

City of Punta Gorda - City of Punta Gorda Florida
Punta Gorda Chamber of Commerce - Punta Gorda Chamber of Commerce: Home Page
Charlotte County - Charlotte County BCC
Charlotte County Chamber of Commerce - Charlotte County Chamber of Commerce || Port Charlotte, Florida

Prices of homes have been increasing. We were short on inventory but it has been picking up since the snow bird season has started.

It is necessary to make sure your rental income will cover your out of pocket expenses such as the mortgage payment, taxes, insurance, maintenance, repairs and vacancy rate. Right now, demand is higher than supply. Check with local real estate agents or call rental ads to see what the going rental rate is within the areas you are looking to purchase a property. Rentals can be month to month, 3 month, 6 month, short term, or annual. Check with your local tax adviser before entering into a purchase agreement for any investment property to make sure you qualify and follow the strict requirements. Don’t count on appreciation. With the market the way it is right now, appreciation is not a guarantee. When looking at homes, you want to purchase a home that would have an attractive resale value no matter what the market is like. Obviously you would like to make a profit if you did resell.

[foggytoad]

My husband and I bought a retirement home here in Rotonda West in 2010. We come down with friends and family four times a year to escape the cold (like now) and just enjoy what SWFL has to offer. We knew there would be plenty of expenses as previous posters have mentioned so we were prepared to offer our home to short term rentals to cover some of the costs. We don't rent a lot, and to be totally honest, don't want to rent a lot because renters can be hard on your home. A stain here, a nick in the woodwork there, broken this or that, etc. We even had one drive into the garage wall. Thankfully it was minor damage and could be repaired easily. Then there's the huge increase in water consumption and electricity use during their stays. I'm thinking some of them must leave the lights on night and day and take five showers a day or ten loads of laundry. Think it through carefully. Having said all that, we love it here and glad we bought our home in Rotonda West. It's is a quiet community. Too quiet for some we know. It's not rural but you do have to drive to the nearest Publix or Winn Dixie for groceries. It's about fifteen minutes to the Gulf of Mexico. There's a Home Depot, Walmart, Walgreens, CVS, etc. within 10-15 minutes and if you need more Port Charlotte is about 25 minutes away for additional shopping. Lots of people rent their homes out in Rotonda. Check VRBO.com and you'll learn a lot about the homes here plus what rentals are going for, etc. DM me if you want the name of a great realtor in this area or any more info.

[Vikingen]

If you are going to rent - most renters appreciate closeness to beaches - so you need to consider the Rontonda area or Gulf Cove. Both have canal fronts. Inventory with houses is lower in the area now than in a long while. However there is still some nice ones out there - with great potential.

We rent our house only to Scandinavians - and basically fill it about 6 months a year. The reason we only rent to Scandinavians is that they are frugal, careful and less fuss. We even manage a nice profit each year - not much - but gives us some play money - and it pays for the house.

If you plan to rent - you need to buy a house that has a pleasing interior/exterior. You might like the pinks and greens - but most people don`t. Stay with the neutrals and whites - they are safe. Don`t over-decorate interiors - do not make the interior personal either. People that want to rent shop with their eyes - and they want to show pictures back home of the nice, luxurious home they rented.

Take good pictures and post on sites like HomeAway. You really need to take good pictures - they sell more than thousand words. The nice houses get booked first - year after year.

[kyjake39]

A year ago your plan would have had a better chance of working out as now as there seems to not be as many nice homes on the market and they are higher.One shouldn't have a problem keeping a nice place rented seasonally for about five month's a year at a good price but yearly rentals are low compared with most areas.If buying on a canal and get a mortgage try hard to find a place that is out of the flood zone as the lender will require you to carry flood insurance.

[RexLan]

You will never cover you expenses, much less the mortgage, for a $300K home as a seasonal rental. It will likely be vacant most of the summer and you will want to use it in the prime times.

You will have a mortgage expense of ~$10-12,000, $2,500 for homeowners, 12% for rental tax, $3,000 in property taxes, $300.month for utilities when rented .... YOUr rental income won't come close.

Save your $$ and wait until you are ready to move or close.