QueenCat Posted July 5, 2020 Share Posted July 5, 2020 We are thinking about buying a condo in the OBX. We would use it for approximately 4 full weeks a year and some weekends. We live about 3 hours away & know we would use a property manager. It'll be a small mortgage as we'd put about half down. Other than mortgage, hoa fees, taxes, repairs, property management fees, what do we need to think about as far as money goes? And what else? Experienced tourist rental owners, please share. Quote Link to comment Share on other sites More sharing options...
Melissa in Australia Posted July 5, 2020 Share Posted July 5, 2020 I have no personal experience, but know someone with beach holiday cabins. A downfall is property distruction . People come for the weekend, have a party and smash all the China and glasses. Others steal all the bedlinen. Also people book for one family staying but actually bring a very extended family and friends and cram them in,... It is different than renting out a house to long term tenants 3 1 Quote Link to comment Share on other sites More sharing options...
QueenCat Posted July 5, 2020 Author Share Posted July 5, 2020 1 hour ago, Melissa in Australia said: I have no personal experience, but know someone with beach holiday cabins. A downfall is property distruction . People come for the weekend, have a party and smash all the China and glasses. Others steal all the bedlinen. Also people book for one family staying but actually bring a very extended family and friends and cram them in,... It is different than renting out a house to long term tenants That is a concern, for sure. Quote Link to comment Share on other sites More sharing options...
freesia Posted July 5, 2020 Share Posted July 5, 2020 Don’t forget hurricane insurance. The OBX are often hit. 2 Quote Link to comment Share on other sites More sharing options...
TrulySusan Posted July 5, 2020 Share Posted July 5, 2020 We’re in a slightly different situation, but I’m going to mention this just in case it applies. We are currently in the process of buying a second home( condo in college town where dd will live with a roommate),which is mortgaged the same as a vacation home, and a specific thing we had to sign and verify was that we would not be using a property management company. I think it’s because investment property is a different mortgage than second home/vacation. YMMV Quote Link to comment Share on other sites More sharing options...
QueenCat Posted July 5, 2020 Author Share Posted July 5, 2020 5 minutes ago, freesia said: Don’t forget hurricane insurance. The OBX are often hit. Thanks, definitely needed... but it's the closest "nice" beach to us... 1 Quote Link to comment Share on other sites More sharing options...
QueenCat Posted July 5, 2020 Author Share Posted July 5, 2020 1 minute ago, TrulySusan said: We’re in a slightly different situation, but I’m going to mention this just in case it applies. We are currently in the process of buying a second home( condo in college town where dd will live with a roommate),which is mortgaged the same as a vacation home, and a specific thing we had to sign and verify was that we would not be using a property management company. I think it’s because investment property is a different mortgage than second home/vacation. YMMV Ugh... that could be an issue. We won't be close enough to just run down there for sudden repairs. Dh still works full-time and travels (not right now). Plus I think I'd want that help. It would be an investment... but we'd use it too. I know we'd use it enough that we wouldn't get a lot of the tax write-offs... Quote Link to comment Share on other sites More sharing options...
TrulySusan Posted July 5, 2020 Share Posted July 5, 2020 1 minute ago, QueenCat said: Ugh... that could be an issue. We won't be close enough to just run down there for sudden repairs. Dh still works full-time and travels (not right now). Plus I think I'd want that help. It would be an investment... but we'd use it too. I know we'd use it enough that we wouldn't get a lot of the tax write-offs... I’m not really sure if that was specific to our mortgage company, state, or whatever, but definitely had to sign it last week. 1 Quote Link to comment Share on other sites More sharing options...
Scarlett Posted July 5, 2020 Share Posted July 5, 2020 All I want to know is where is it and can I rent it? 3 Quote Link to comment Share on other sites More sharing options...
alisoncooks Posted July 5, 2020 Share Posted July 5, 2020 16 minutes ago, Scarlett said: All I want to know is where is it and can I rent it? The OP said OBX = Outer Banks, NC. OP - how fun! We go to that area at least annually. My SIL's family has a house in Hill Devil Hills and an apt on Ocracoke. At the end of this month, my kids and I are RVing in Hatteras (well, technically Rodanthe or Avon, can't remember) with my parents. We do this every July. 1 1 Quote Link to comment Share on other sites More sharing options...
Terabith Posted July 5, 2020 Share Posted July 5, 2020 My aunt owned a beach condo at Hilton Head, but between hurricane damage and constant upgrades from the condo manager, it was far, far more money than she wanted to spend and she wound up selling it. 1 Quote Link to comment Share on other sites More sharing options...
Annie G Posted July 5, 2020 Share Posted July 5, 2020 Get some quotes on insurance. After my BIL passed away, sis decided she wasn’t using the condo enough so decided to do some short term rentals like you’re talking about. Her insurance quotes skyrocketed. She ended up not doing it and just renting it to one person for the year. The insurance was higher than when she wasn’t renting it but way lower than the quotes for occasional renters. But that was a few years ago and maybe now it’s not like that. Her place in in Florida and location might make a big difference. Hope it works out for you! Quote Link to comment Share on other sites More sharing options...
Scarlett Posted July 5, 2020 Share Posted July 5, 2020 1 hour ago, alisoncooks said: The OP said OBX = Outer Banks, NC. OP - how fun! We go to that area at least annually. My SIL's family has a house in Hill Devil Hills and an apt on Ocracoke. At the end of this month, my kids and I are RVing in Hatteras (well, technically Rodanthe or Avon, can't remember) with my parents. We do this every July. Ty. I had no clue what that meant Quote Link to comment Share on other sites More sharing options...
Liz CA Posted July 5, 2020 Share Posted July 5, 2020 (edited) Seconding what @Melissa in Australia and @Patty Joanna said. Three hours seems a short drive now but as we get older those hours are getting longer for us at least. Think of what some people do in hotel rooms...no different here. There are nice renters that will treat it as if it were their own and then there are others and I don't know how you can tell the difference from a brief interaction on airb&b or through property management. Security deposits often don't cover half of the damage done. Some things you cannot see right away, then suddenly several rentals later there is a problem and you cannot trace it back to a particular renter. Too much of a headache for me. Frankly, I rather save money and be the renter several times a year. Edited July 5, 2020 by Liz CA 1 Quote Link to comment Share on other sites More sharing options...
YaelAldrich Posted July 6, 2020 Share Posted July 6, 2020 If you do buy it, I'm happy to be on your renter's list. Just came back from Duck! 1 Quote Link to comment Share on other sites More sharing options...
QueenCat Posted July 6, 2020 Author Share Posted July 6, 2020 I knew I could count on the Hive for advice. Definitely in the "thinking about it" phase. 1 Quote Link to comment Share on other sites More sharing options...
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