Florida beach house as rental property

[kodiakisland]

My wife wants a beach house in Florida as a vacation/rental property.  I've owned rent houses and want nothing to do with long term rentals, but know nothing about vacation rentals.  I'd love to hear some of the pros/cons from those who have vacation rental property.  From how you decide who manages it for you, your level of involvement, and whether it has turned out the way you expected.  I'm guessing we would want to use the house 2 months out of the year for personal use.  We would not be looking to make money on it, but hopefully break even.

[ricepig]

We've, extended family, have owned a house at Seaside since the early 90's. We've used the same service down there since then. Now, we probably average 4 months of service, maybe more in some years, but it doesn't work as a break even situation, haha. It's nice to have someone you can trust to make sure when it's rented out, that everything is back in place after it's been rented out. Over the 25+ years, we've had a few instances of broken furniture, etc, but nothing out of the ordinary.

[Vantage 8 dude]

My wife wants a beach house in Florida as a vacation/rental property.  I've owned rent houses and want nothing to do with long term rentals, but know nothing about vacation rentals.  I'd love to hear some of the pros/cons from those who have vacation rental property.  From how you decide who manages it for you, your level of involvement, and whether it has turned out the way you expected.  I'm guessing we would want to use the house 2 months out of the year for personal use.  We would not be looking to make money on it, but hopefully break even.

My only problem would be whether or not you'd want to be "chained" to going there year after year just to make it worth your while. Yes, I totally understand that you could you rent it out but that you wouldn't necessarily be required to visit annually; however, it's still a consideration. The other thing: a lot of folks think owning real estate in that area is a great investment. As with anything: maybe, maybe not. As you likely know the initial expense of buying the house is only the beginning. The upkeep, maintenance, insurance, any taxes, etc. can potentially add on a ton of expenses that just "keep on giving". A lot of my friends have considered such and have opted to just go ahead and lease/rent either a condo or house for the time they may be there.

One factor that obviously could very much swing things in your favor would be if you plan on moving there permanently at some point in the future. Buying now, using it/renting it out in the meantime would then take on a whole new consideration.

[kodiakisland]

Use should not be a problem.  I work every other week so i have a lot of free time.  We currently do one big vacation a year, but go to the beach in FL or CA several times a year.  Personally i would rather have a cabin in MT, but the wife likes the beach.  I worry about people trashing the house or extended periods without rentals.  I sold the rent houses because i didnt like the negative cash flow every time the renters screwed something up.  I dont know if a vacation rental would be any better.

Im trying to convince my wife we would come out ahead renting a house a month during the summer and a month during off season instead of buying.  On the other hand, maybe buying would be better over the long run looking at it as an investment.  They aren't making more beach front property afterall. 

[Karma]

We've, extended family, have owned a house at Seaside since the early 90's. We've used the same service down there since then. Now, we probably average 4 months of service, maybe more in some years, but it doesn't work as a break even situation, haha. It's nice to have someone you can trust to make sure when it's rented out, that everything is back in place after it's been rented out. Over the 25+ years, we've had a few instances of broken furniture, etc, but nothing out of the ordinary.

I love Seaside. Every time I've been there I thought I should buy a house there.

[ricepig]

I love Seaside. Every time I've been there I thought I should buy a house there.

Well, I lucked into this, haha. My Mom and her sister had both bought condos at Bay Point in PCB back in the 70's, that got stale and crowded, and in the early 90's they bought a house at Seaside. Since then, we've bought them out, but with 3 other siblings and our kids now adults, we keep it busy. At Christmas, we have a draw for the order of picking weeks for the upcoming year. It has become more crowded, but I still enjoy it for a few weeks a year.

[Karma]

Well, I lucked into this, haha. My Mom and her sister had both bought condos at Bay Point in PCB back in the 70's, that got stale and crowded, and in the early 90's they bought a house at Seaside. Since then, we've bought them out, but with 3 other siblings and our kids now adults, we keep it busy. At Christmas, we have a draw for the order of picking weeks for the upcoming year. It has become more crowded, but I still enjoy it for a few weeks a year.

That sounds awesome. I've run the math on moving to Seaside and having the no income tax pay for the cost of housing, but ultimately don't want to leave Arkansas.

[ricepig]

That sounds awesome. I've run the math on moving to Seaside and having the no income tax pay for the cost of housing, but ultimately don't want to leave Arkansas.

I'm not a big beach, lay in the sun person, but always enjoy my time there. The kids actually learned how to ride bikes there, hard to believe living in Jonesboro, but our neighborhood is on the ridge. I remember when Modica's, Bud and Alleys, and a few others were about it.

[HighcountryHog]

Family has had a place near Rosemary since about 2000.  It definitely does NOT make money, but we don't worry about budgeting for big family trips anymore.  Parents and sisters/their families use it quite a bit.  For any place down there, expect to not have any revenue for three solid months a year.  Summers are about filling the house every single week.  The odd week or few days when it can't be filled is usually when my parents or one of my sisters will go down.  After Christmas is when off season projects begin and last until February/March.  Even with the best guests, the property will need some TLC every year.  That salt air is corrosive as heck.  And, even if your place is fine there is always something going on with the HOA that you will want to follow.  We had a water line break this past year, and that was way bigger of a deal than it needed to be.   

The last two years the family has been debating whether to sell or when to sell.  We all love it down there, but it's changed.

[Karma]

How much is it a sq ft for a nice place with an ocean view?

[HawgPilot]

I owned one in Blue Mtn beach for about 4 years.  Bought it in 2012, after the crash and was able to make a nice return and use it several times a year.  Guess I'm saying, my experience was good and I'd do it again.

[vandybuff]

My wife wants a beach house in Florida as a vacation/rental property.  I've owned rent houses and want nothing to do with long term rentals, but know nothing about vacation rentals.  I'd love to hear some of the pros/cons from those who have vacation rental property.  From how you decide who manages it for you, your level of involvement, and whether it has turned out the way you expected.  I'm guessing we would want to use the house 2 months out of the year for personal use.  We would not be looking to make money on it, but hopefully break even.

I agree with Ricepig .... and will add if you buy a house in a 'hot' beach spot, your appreciation may allow you to break even for the yearly losses even if well rented.