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Best return for vacation rental

Old 12-23-2019, 10:05 AM
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Default Best return for vacation rental

I'm looking for another income producing property. I have one "vacation" rental that does well, and I'd like to add another. I'd like the gulf coast somewhere, but am somewhat open to other ideas. I'm comfortable with the daily rentals vs long term tenants at this point. Please give me any suggestions/locations you have experience with. My focus would be on % return/cashflow and not so much a place to use for myself, although a place that I could use occasionally would be a bonus. From what I'm looking at, rates are low and prices are high. I'd be looking in the 200-600k range, obviously the lower the better!
Old 12-23-2019, 10:16 AM
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Try looking in the Fort Morgan area. Away from the crowds and decent fishing. We have a condo at Navy Cove harbor. It has it's own marina and is located on the bay side of the Fort Morgan Hwy. The Gulf beach is about 200 yards across the highway. It's located about 3 miles from the Fort and ferry landing. Rents well all summer and we have snowbirds that rent for 2 or 3 months each winter. After mngt fees we usually clear about 17 or 18 thousand.
Old 12-23-2019, 10:17 AM
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Originally Posted by Stungray View Post
Try looking in the Fort Morgan area. Away from the crowds and decent fishing. We have a condo at Navy Cove harbor. It has it's own marina and is located on the bay side of the Fort Morgan Hwy. The Gulf beach is about 200 yards across the highway. It's located about 3 miles from the Fort and ferry landing. Rents well all summer and we have snowbirds that rent for 2 or 3 months each winter. After mngt fees we usually clear about 17 or 18 thousand.
17 or 18 on what initial investment? I will certainly look. Thanks
Old 12-23-2019, 10:30 AM
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mountains of north carolina - neighbor has one and it was rented so much he had to take it out of the rental market so he could use it.
Old 12-23-2019, 11:12 AM
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Originally Posted by johnboy114 View Post
mountains of north carolina - neighbor has one and it was rented so much he had to take it out of the rental market so he could use it.
Where at in the mountains? I have been looking at mountain properties in NC recently. I had planned on a coastal property. Prices are just so damn high on everything right now. I hate feeling like I am overpaying for something.
Old 12-23-2019, 05:43 PM
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Originally Posted by johnboy114 View Post
mountains of north carolina - neighbor has one and it was rented so much he had to take it out of the rental market so he could use it.
Originally Posted by 2Smoker119 View Post
Where at in the mountains? I have been looking at mountain properties in NC recently. I had planned on a coastal property. Prices are just so damn high on everything right now. I hate feeling like I am overpaying for something.
Bumping this as I'm always looking at buying a place in the NC mountains.
Old 12-23-2019, 05:54 PM
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Originally Posted by 2Smoker119 View Post
Where at in the mountains? I have been looking at mountain properties in NC recently. I had planned on a coastal property. Prices are just so damn high on everything right now. I hate feeling like I am overpaying for something.
Mountains in NC? It’s not a feeling sir, it’s a fact. I just hope I can cash in on it when it comes time to retire to the lake full time!
Old 12-23-2019, 06:06 PM
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Bullhead City, Arizona. In the Laughlin Ranch district. You get summer crowds from California that use the Colorado River from Memorial Day until Labor Day. Then you get the snow birds in the winter that come from cold states and Canada. Prices for a 2000-2500 sq ft home range from $300K to $400k based on location (golf course view or inside view) and size. Incredible deals at the moment for a year round attraction.
Old 12-23-2019, 06:14 PM
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Outer Banks of NC. Start with Twiddy Realty in Duck to check the market. We don't own property there but have rented for years. The most organized and easy to use vacation rental market we have ever found.
Old 12-23-2019, 06:40 PM
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OP, asked about ROR. I haven’t seen an answer to that yet. You're looking at about 10 % at the Jersey Shore on a 500G investment.
Old 12-23-2019, 06:55 PM
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a "shack" in a seasonal beach down can get $$$ during summer months and still some during winter

you have to run the #s, not hard to do

taxes are another consideration along with insurability (near water can lead to insurance concerns)

i was looking at some 2-3 family rental props in one of the wealthiest zip codes, $5-600k, lowest taxes anywhere in the state, income potentially $5200-5800/mo but they are unicorns (very hard to find / limited supply)
Old 12-23-2019, 07:31 PM
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10% return seems to be what most investors are looking for. I am selling my vacation rental in Marco Island FL and the gross rental income is around $120k per year. Expenses are $35-40k so net is around $80k. I am asking just over $1m so around 8% return. I have had many calls on the property but most say they want 10% return. I will probably spend a year renting for higher rates and going down less so I can get it to the 10%.

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