Beach Condo Rental Property

[KentuckyWildcat]

Does anyone have any knowledge in this area for investment property? It seems like a good idea on the surface but.....

I don't see a ton of info out there online - Why is that?
I know there is the maintenance fee - but what other hidden fees?
I understand the unit owners are responsible for paying for building upgrades and remodel - Is this a big deal?
Are there any unique financing issues? (ie Monthly payment per number of years, condo not standing good for itself, etc..?)
Why is everyone not doing it?


A lot of broad questions here, but any info or resources would be appreciated.

[Darrell KSR]

Always a question of finances. A condo on the beach won't cost the same as a condo n my backyard. There are regular maintenance fees, condominium dues, management companies, taxes, rental concerns, etc that play into the equation. I have a number of clients and others who own places at the beach and rent them out, and it is a good investment many times.

Unfortunately, I don't know of any resources. Probably spend enough time on the internet and you can locate pro-forma income statements and other sources that may give you some guidance.

[MickintheHam]

Does anyone have any knowledge in this area for investment property? It seems like a good idea on the surface but.....

I don't see a ton of info out there online - Why is that?
I know there is the maintenance fee - but what other hidden fees?
I understand the unit owners are responsible for paying for building upgrades and remodel - Is this a big deal?
Are there any unique financing issues? (ie Monthly payment per number of years, condo not standing good for itself, etc..?)
Why is everyone not doing it?


A lot of broad questions here, but any info or resources would be appreciated.

I don't know where you are looking, but Insurance (hurricane) is a major concern. Some places you can't get it. When you can get it, the price is out the roof. There are some 1 bedroom condominums in the heart of Destin that I am familiar with. Insurances, interest, taxes and condominum fees were more than the price of the unit itself. If you rent it management fees can also be cumbersome. Florida was heavily over built in the 99-08 period. I'm not sure how far the market has come back. I have investment money in real estate. Other than my house it's all in REITs. I rent when I go to the beach.

One other item, I know a lot of beach property owners who after hurricanes have had serious issues with their neighbors and fellow condo owners over repairs and the timeliness of repairs. If it is a condo, you could get out voted when there is major damage to the complex.

[KentuckyWildcat]

I don't know where you are looking

Most likely the Gulf Shores / Orange Beach area. We like that area as it about as convenient as a beach can get for us. But I'm also crossing off a small bucket list of beaches to see where we may want to end up one day.