OT: Anyone own rental property in the Outer Banks?

[keav8447]

My family has been vacationing in Duck, NC the last couple of years and really love it. We are in a good place financially and were thinking about buying a place. This forum seems to have wide ranging experience in so many areas that figured I would put it out there and solicit advice.

Knowing this group likes specifics, I will offer the following.

House price 500-550k. We would put down 200k. We are considering this because we really love the area and like the idea of having rents offset the mortgage. Not under the illusion that this would generate any income or even cover the expenses. We live in Bucks County and realize the Jersey Shore is much closer and great (I spent many summers on LBI) but we really like the OBX.

Thought someone might have had experience and could share thoughts both pro and con.

Also- the 200k did not come from being rear ended by an NJ Transit settlement or from suing the Barclays Center for injury of missing a concert. Thanks!

 

[RUskoolie]

Everything I have heard about vacation properties is they are not a good investment.

The only people who don't want a shore house are the people who own a shore house.

200k down? What's your ROI on that? I'm guessing it would be really poor. Like sub 3-4%.

 

[Knight Shift]

Everything I have heard about vacation properties is they are not a good investment.

The only people who don't want a shore house are the people who own a shore house.

200k down? What's your ROI on that? I'm guessing it would be really poor. Like sub 3-4%.

Best investment I ever made. We will draw $35-40,000 per year from our vacation rental property at the Jersey Shore in our retirement. We rent the house weekly in summers, so we have no problems with bad tenants since the weekly renters are families with small children. Besides this, we use the property several times per year to go to the beach and for parties, etc. It's been a home run all the way around.

We have scoped out numerous other rental properties with outstanding returns on investment--on the order of 10+%.

@keav8447 --you should know the market and what a rental property will get. A good realtor is your best asset. When we bought our first rental property, we worked with an outstanding realtor who was great at calculating ROI for properties. Best advice I can give is find a great local realtor, a handyman and/or a reliable cleaning person.

When doing your calculations, make sure you check on the cost of homeowner/renter's insurance. Some areas are very expensive to insure a home.

 

[BanksReal]

My family has been vacationing in Duck, NC the last couple of years and really love it. We are in a good place financially and were thinking about buying a place. This forum seems to have wide ranging experience in so many areas that figured I would put it out there and solicit advice.

Knowing this group likes specifics, I will offer the following.

House price 500-550k. We would put down 200k. We are considering this because we really love the area and like the idea of having rents offset the mortgage. Not under the illusion that this would generate any income or even cover the expenses. We live in Bucks County and realize the Jersey Shore is much closer and great (I spent many summers on LBI) but we really like the OBX.

Thought someone might have had experience and could share thoughts both pro and con.

Also- the 200k did not come from being rear ended by an NJ Transit settlement or from suing the Barclays Center for injury of missing a concert. Thanks!

Go to Town of Duck web site. Search for "new homeowners guide" Realtor in video is RU grad

 

[RUskoolie]

Best investment I ever made. We will draw $35-40,000 per year from our vacation rental property at the Jersey Shore in our retirement. We rent the house weekly in summers, so we have no problems with bad tenants since the weekly renters are families with small children. Besides this, we use the property several times per year to go to the beach and for parties, etc. It's been a home run all the way around.

We have scoped out numerous other rental properties with outstanding returns on investment--on the order of 10+%.

@keav8447 --you should know the market and what a rental property will get. A good realtor is your best asset. When we bought our first rental property, we worked with an outstanding realtor who was great at calculating ROI for properties. Best advice I can give is find a great local realtor, a handyman and/or a reliable cleaning person.

When doing your calculations, make sure you check on the cost of homeowner/renter's insurance. Some areas are very expensive to insure a home.

10+% is good but I haven't seen anything close to that on shore rentals. And yes, 35-40k per year is great once the home is paid off but I am curious was your cap rate or COC return.

I just can't imagine it being a good return because your relatives want to stay a week, friends, your own family and they want a discount or don't want to pay. Then you need to pay a PM, you have high flood insurance...then you feel obligated to visit every year because you own the house. I am personally not a fan but to each his own.

 

[imoapie]

nm