Is Beachfront Invest Good Idea?
I am starting to research the idea of owning/renting out beach front property in FL (I live in GA), and I'm looking for any advice from anyone who's "been there, done that."
I began landlording five years ago when a selling agent talked me into renting out my first home instead of selling and then buying. She just didn't want to wait to sell me that new house, but it's been the best thing that ever happened to me! I now have four homes and after scouring the internet, have come to the conclusion that I'm one lucky LL! I have had a couple of bad tenants and survived a six month vacancy, but no real problems. Luckily, all of my rentals generate at least $250/month positive cash flow.
So is it possible to be so lucky with beachfront property? I've thought about all the fees involved, i.e. property mgmt., assessments, etc. A lot of people own/rent their beachfront property so it can't be all that bad, or nobody would be doing it. Right?
I have funds to back up a vacancy if needed, but naturally, I'd really just like the property to pay for itself. (Wouldn't we all??!) I'd rather use the funds to buy MORE property. I'm a stay-at-home mom that buys RE instead of clothes when I get bored...my husband is so lucky! 
Any thoughts, ideas, or websites that might help in the decision process would be most appreciated! THANKS!
I have zero experience in this area, that won't stop me from gabbing. BTW - send me a message when you get all the info gathered. I would be very interested in what you have learned.
Beach front is great for appreication. Beach front is expensive so you might have trouble making the monthly mortgage payments without using short term renters which would naturally pay more. For short term rentors you need a good management company, which you will pay dearly for. If you buy a condo you must make sure they are rental friendly. Also check the local ordinances on short term rentals.
Maybe pick an area and contact management companies in that area and pick their brain. They might be able to point you in the right direction and recommend a realtor.
Many people are buying at the ground breaking these days. You get on the list to be notified of new construction. You get a discount price. In many cases the house or unit has appreciated in double digits before you even close. Rent it for a year or two while you get more appreciation. Then you could sell it, do a 1031 exchange, and do it again. YOu will get the most appreciation in the first couple of years if you got in at the beginning.
Brenda
My partner had one in N Topsail Beach NC. With enough cash down it'll all cashflow . I did notice that he got heckofa deal after a hurricane swept the coast. Also recommend the Texas coast or where the Enron middle management had property.
Good Luck,
Shawn(OH)
I know here in San Diego Oceanfront property (Mission Beach) rented for several thousand dollars a *week* during the summertime. That was fifteen years ago, so it's almost certainly a lot more expensive now. People would literally sign 9 month leases and have to move out for the summer. I'd go with the oceanfront property.
-e-
Beachfront is great if you can afford it. 'Near the beach' also works if 1) it really is NEAR the beach (about 400 yards is the max) and 2) the house/condo and furnishings are nice and tasteful.
What area in Florida are you looking at? I can tell you about the Seagrove/Hwy. 30-A area, but I don't know anything about South Florida. Also, are you willing to do short-term rentals? You'll find much better cash-flow if you do. My wife & I own a property management company in the area and will be happy to discuss with you what we have found that works. Since I'm new to the forum I'm not sure I want to get into it in detail here, as I don't want to inadvertently violate the rules, but if you have specific questions I'll answer what I can--no obligation. Like anything, though, realize it's just my opinon--you'll still have your own DD to do.
[ Edited by Sloan on Date 02/22/2004 ][ Edited by Sloan on Date 02/22/2004 ]
Oh Sloan, "shoot me a PM" also gets you in trouble with the forum.
Thanks for the heads up Bgrossnickle. I modified the original a little...hopefully this version will pass muster.