Lynn Haven FL -- is real estate there an worthy investment? (Panama City: apartment complexes, rental)

[RobertFisher]

I am interested in a property there. The place is in 32404 zip code, but right outside Lynn Haven, which seems to have lower crime rate than Callaway.

How is that area as a vacation home site? I see it's close to the white sand beach of Panama City, and Florida has the mild weather...

How is the housing price trend?

[beachmouse]

Pre-Michael, it was a nice middle to upper middle class area for year round residents with probably the best high school within 60 miles of there. Not sure how the rebuilding continues- it got hit hard by the storm.

Panama City/Lynn Haven is relatively far from the beach. It could work well as a second home for some, particularly if you are into boating on the Intracoastal but it's not going to be a good short term rental option if local code of HOA even allow it. Just too much of a drive to get to the Gulf, and tourists want to be within walking distance to a beach access point.

Right now, the local housing market remains a mess after the hurricane. The bottleneck is affordable housing and renting- lots of locals couldn't afford to buy, about 70% rented and a lot of apartment complexes got taken out in the storm.

[RobertFisher]

Haha I had to think for a while what "Pre-Michael" means... At first I thought it was some mayor.

Let me share some recent sales. Price seems very very attractive for the goods.

240K for bayfront single family home with dock:
https://www.zillow.com/homedetails/2...42758060_zpid/

160K for bay front single family home, 3 bed 2 bath 2000 sqft with pool and dock:
https://www.zillow.com/homedetails/2...42758063_zpid/

So these prices are because of the Michael Hurricane damage? Anyway to estimate how much more money is needed to repair these homes? Or, without Michael's damage how much would these homes be?

Location seems like a good vacation home option (for my own use). For the price, I think rental yield (to locals as opposed to tourists) must be very very high... Because for the 2nd home, even if I assume 320K normal price, 2% return would be 533 monthly rent only. A house like this can't rent for only 533 a month, can it?

[beachmouse]

Rental income for that kind of house likely syncs pretty well with whatever an Air Force captain (or equivalent) with spouse and two kids would be getting for housing allowance when stationed to Tyndall AFB or the Naval Systems post. Those numbers, I do not know, but I'd guess somewhere between $1500 and $2100 a month.

If there is hurricane damage, you're likely limiting the buyer pool to cash-only buyers because few lenders want to go the construction loan route when there's still a lot of uncertainty about timelines for repairs. On the other hand, enough housing got taken out that cash only doesn't push prices down as much as you'd expect.

[m1a1mg]

beachmouse nailed most of it. If you're investing from a distance, you might want to take a trip and visit. Big chunks of Lynn Haven are a mess.

[RobertFisher]

how is fishing inside the bay?

and are there any good diving around the greater Panama City area?

[RobertFisher]

is there a going rate for an acre of bayfront buildable site?

[hiway 231]

The Lynn Haven area is rebuilding after Hurricane Michael.

[RobertFisher]

Originally Posted by hiway 231

The Lynn Haven area is rebuilding after Hurricane Michael.

That actually is positive factor for Investing... damages depress the price so you get property at low price...

[FentonOHJC]

Originally Posted by RobertFisher

That actually is positive factor for Investing... damages depress the price so you get property at low price...

Except when everyone has this same idea before you and buys the land first for resale...which is what is happening in many places. Modern day carpetbagging.