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I plan to retire in 1-2 years. I'm fortunate enough to be in a position to buy a one bedroom condo at the beach. Let's say one in the $200-250K range. I realize there are HOA fees as well. Also, I would not wish to do maintenance or work on the condo. I would be paying someone else for that. Condo would be @ 250 miles away, so easily accessible in case something happened. To be even more specific, let's say I estimate I would live there 2-3 months out of the year and rent it 5-6 months out of the year. So 3-4 months it could be vacant. I realize scheduling for rental could be an issue as well. My hope would be that financially it would be no gain and no loss. But is this feasible under the circumstances I've put forth?
I'm curious if anyone has bought a condo at the beach with these plans in mind? I'm sure people have, but the question I have is do they regret doing this? Was it a good idea or bad ideal?
I plan to retire in 1-2 years. I'm fortunate enough to be in a position to buy a one bedroom condo at the beach. Let's say one in the $200-250K range. I realize there are HOA fees as well. Also, I would not wish to do maintenance or work on the condo. I would be paying someone else for that. Condo would be @ 250 miles away, so easily accessible in case something happened. To be even more specific, let's say I estimate I would live there 2-3 months out of the year and rent it 5-6 months out of the year. So 3-4 months it could be vacant. I realize scheduling for rental could be an issue as well. My hope would be that financially it would be no gain and no loss. But is this feasible under the circumstances I've put forth?
I'm curious if anyone has bought a condo at the beach with these plans in mind? I'm sure people have, but the question I have is do they regret doing this? Was it a good idea or bad ideal?
No damn clue as to what beach or what the rental rates will be on AirBnb/VRBO etc. don’t forget cleaning fees between renters as well.
More data = better answer
Otherwise. It could work, or you can lose your azz. Or it could be anywhere between those two.
Are you paying cash?
If not, are you going to commit mortgage fraud and purchase with an intent to occupy loan or an investment loan?
Does the complex prohibit STR?
If you have to look up STR stop and don’t do it.
What are the HOAs? I’ve seen everything from $78 to thousands.
Where are you providing furniture and cleaning supplies from?
Which cleaning service are you going to be using? Are they reliable for a quick turnaround?
How are you going to handle keys/access?
My gut reaction is that you have to be nuts to contemplate any kind of rental 250 miles away. Yeah, lots of people make it work. But lots of people get their azz handed to them.
1 - You want to live there at the best time of the year. You want to rent it out at the not so best time of year when there might not be any interest.
2 - You want to rent it out for 6 months or less. That probably puts you in the air bnb category which has it's own set of risks and expenses.
3 - Your insurance company is likely to take a dim view of long vacancy periods.
4 - 250 miles. That's a 4 or 5 hour drive for an emergency. Like Sunday night when the water heater bursts.
5 - If you have to sue somebody, that's multiple weekday trips to court and you don't get compensated for your travel time and costs.
6 - Tenants often turn a place to s-hit over time.
BACK in the late 80s,those who bought condos/apts /houses on Hilton Head and Mrytle beach,hoping to rent them out to tourists and make the condos pay for itself found out (1) these homes are not as well built as they are not meant to be primary residence(2) you need rental agent to find you renters and they charge a fee plus cleaning plus utilities,tourists came and open all windows,turn on the A/C and left for the beach.
They came back drunk and destroyed the place,when they left,they help themselves with whatever strikes their fancy.
also you have to furnished the place ,and the days which they want to rent are the best days of the season when you wish you could enjoy your condo.
why not be the renter instead of the landlord
There are condo building management firms/buildings that can rent your condo and block out time for you to use it. That said, if you ever plan on living there full time there are other issues. Living there full time you may not like all the absentee owners, renters, nor the management firm. In any owners association I would want limits on the amount of rentals and length of rentals. Such as no more then 10% renters and no less then a 6 month rental.
We have a unit that is managed by an adjacent resort. If we open it up for rentals, the hotel itself manages booking, housekeeping, etc. The unit would be available via the resort's website, alongside normal hotel rooms.
I have investment (long term) rental properties, but I'm not involved enough to do airBNB style.
We have a unit that is managed by an adjacent resort. If we open it up for rentals, the hotel itself manages booking, housekeeping, etc. The unit would be available via the resort's website, alongside normal hotel rooms.
I have investment (long term) rental properties, but I'm not involved enough to do airBNB style.
This is what I had in mind. I thought this was not that hard to plan that the property is available to rent from May-October. And thus I might be there at any time from November-April.
This is what I had in mind. I thought this was not that hard to plan that the property is available to rent from May-October. And thus I might be there at any time from November-April.
If you do one of those resort/condo exchange things, be prepared for some sticker shock on the HOA fees. And also be prepared for when you do want to live there full time being overrun with tourists all day, every day.
If you do one of those resort/condo exchange things, be prepared for some sticker shock on the HOA fees. And also be prepared for when you do want to live there full time being overrun with tourists all day, every day.
Good Points. I felt like this was probably a bad idea. I just thought I would post to see if I needed to totally kill it. LOL.
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