Condo Ownership - Port A

[Thunderhoof]

My wife and I are considering buying a condo down at Port A as an investment property. At least I think that's the right term for it. I have a few questions about that:

1) We would plan on renting the condo out when we are not there. I understand that about 50% of the rental fee goes to property management. Is that really accurate?

2) How does property insurance kick you in the *** in hurricane territory? I'm sure that there are other issues, too, like when renters annihilate the place. Do any of you own condos down there?

3) My wife and I have a unique housing agreement with my employer that might enable us to declare the condo as our primary residence, homestead, etc. Who do I talk to about this sort of thing?

4) We are looking at doing this 3-5 years from now, but it's a significant investment and I'm sorta learning from scratch so I wanted to start early.

5) I would pay for solid professional advice. I'd be interested in looking at the financials of the deal, obviously, but also how that impacts our taxes, etc etc.

I appreciate any help you might be able to offer, including help that says "This is a ****** idea and you are crazy for even considering it" -- just tell me why thats what you think. Thanks!

 

[brntorng]

We've been going to Port A every year for over 25 years and have considered buying a condo rather than renting. However, my observation is that the rental season in Port A is relatively short and tends toward long weekends rather than week-long stays. As a result it doesn't look to me like the return on investment is there. Also, the maintenance on beach properties is relatively high due to the heat, humidity, and salt. Of course, the stats on each property will vary and I'm sure the management can give you typical rental income for their condos. But don't be surprised if the cost significantly exceeds the income.

 

[handcruser]

my family owns a house in rockport on key allegro that we rent out. The rental fees are something like 30% if it is under 3 days, 20% if it is under a month, and 15% or so if it is long term. The problem is if they dont like you, they wont rent it. Or if another condo is nicer, they wont. Or if they have a personal friend in town, they have been known to give freebies, and since your out of town, how will you know?

We recently put it on vrbo.com, and it has been a huge success. And you get to keep 100% of the nut. Good stuff.

One problem with condos is the hoa dues. and all the saltwater and harsh weather cause a lot of maintenance. I would avoid a condo.

WHat i would do if i was you (which i am not) is not buy a condo in port a. this is for 2 reasons......the first is the hoa dues and maintenance, the second is all the available land to build new condos. Now you might be buying something older and cheaper, but if your not, then selling it could be tough.

On key allegro in rockport, there is no more land as it is an island. Very few lots left, so our investment is a little safer. Just try to buy something you will have some positive equity in.

Just my thoughts.

 

[someone]

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[brntorng]

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[BA93]

Not an expert in this, but I would guess that small time real estate investing like this requires that you can handle any rental downturn, and not lose the property. In other words, its a vacation property for you and if you receive close to $0 in rental revenue one year, you can still afford it. And without killing your lifestyle. It doesn't do any good if you and your wife and sitting around eating Ramen noodles just to keep a condo in Port A afloat.