2 Cool Fishing Forum banner

1 - 9 of 9 Posts

·
Registered
Joined
·
71 Posts
Discussion Starter · #1 ·
would appreciate anyones personal experience and insight into investment property on the coast, particularly in Port A, Rockport, upto Port O area. have experience in other areas, not coast.

open to any insight, but here are some questions I have:

- fixed structure vs. trailer/rv and/or lot
- coastal appreciation vs. larger city appreciation (e.g. San Antonio)
- long term leases vs. daily/weekend/weekly
- amount of damage to expect from renters

responses welcome here or at my email [email protected]
 

·
Registered
Joined
·
405 Posts
I have two condo's in the Corpus area. I rent out short term in the summer and long term in the winter to snowbirds. I have not had any problems with damage from renters, just a few small items missing during the summer (can openers, etc.) My long term winter folks are great and have returned every year for five years now. They leave the place spotless. In return, i keep the place in good shape. This year I put in all new furniture in both places, painted, etc. I rent them out enough to pay the bills, taxes and get a decent return. The plus for me is I have a place for friends to stay during the summer if I need it and we have allot of friends in the complex that make it fun to visit. I bought both units fairly cheap and have even been offered more than I paid for them recently, but decided not to sell.
 

·
Lord, beer me strength!
Joined
·
5,041 Posts
I think CRHFISH has the right plan - short term in the summer and then find a good snowbird to take it for the whole winter. I would also think that it would be hard to make any money if you were having to pay a property management company to maintain it and rent it out for you, so I think passive, positive cash flow would be a challenge. You are going to need to work for it.

My neighborhood here in Port A does not allow short term rentals - nothing less than a month. We don't rent it at all, that wasn't our plan... There is a house across the street that was built to be a retirement home for the owner. He's been leasing it out ever since, with the idea of having renters buy the house for him...

Prices surely have been stagnant for the past year or so, but I haven't really seen them drop. Just not much movement. Some houses have gone off the market, some just linger there. I don't see a bunch of firesale prices...
 

·
Worldangler
Joined
·
1,385 Posts
Still good opportunities

I now have two pieces of coastal property, used to have four. Overall my experiences have been very positive and profitable. Prices have gone up hugely in recent years, but there are still deals out there.

My experience is in the POC/Seadrift/Rockport area exclusively.

For example, ten years ago I bought two small cottages in Seadrift for about 10K apiece. One I kept for myself, and one I rented.

I sold one property about 5 years ago for $26K (the rental). The other property is worth about $50K now (at least I have turned down an offer for that much).

The other two properties I have owned were both just lots. The one I sold I doubled my money in 5 years, the other (a 1.1 acre lot at Swan Point Landing) I am holding onto to build a retirement place. It has also gone up in value considerbly in the past 2 years I have owned it. However, other lots in the area have not appreciated as fast - mine is in a great location.

Rentals made a lot of money and offer good tax breaks, but I stopped with rentals for two reasons. First, living a long way from the coast (Dallas) made upkeep and rental arrangements difficult. I used several agents to handle the rentals but had real bad experiences with these "professionals". Things like them renting them, not telling me, and them pocketing the cash. Along, furniture, TV's, towels, etc. came up missing frequently. Also, they rented them out to several "undesirables" for short term, include a construction company who used it to house between 3-7 undocumented workers - who tore the places up.

The second issue I had was with "friends" who constantly wanted to "borrow" the places for weekend hunting and fishing trips. Ended up being the "bad" guy for saying no, and when I did say yes - ended up getting screwed on cash or condition of the property. Finally eliminated the headaches by selling the place.

However, if I lived within a few hours drive - I wouldn't hesitate to do rentals again, but I would manage them myself.

There are still SMOKING deals in Seadrift if you look long enough. Nice lots for 10-12K, and several fixer-uppers. The trick is finding the places yourself, because the real estate agents are asking the max for properties they are handling. But if you find a vacant lot or run-down house/trailer and contact the owner yourself, you might find a steal.

The POC/Seadrift area is still exploding with new lots and developments and I see no downturn for the next 10 years. The rises might not be much for the next couple of years, but I anticipate another price explosion within 6 years. The real draw of this area is that there are still moderate to low priced properties. The new developments going in have lot prices anywhere to 10x to 50x the price of the other "off the beaten path" lots. These super-expensive lots, such as Costa Grande, are being snapped up by folks out of state. Once building gets underway in these new developments, prices for other lots will jump SIGNIFICANTLY. You can possible get 10x your investment in the next 10 years.

Moreover, the real smart money is buying commercial property sites. With the 500-600 new homesites between POC and Seadrift going in, once they get occupied there will be a high demand for retail space for restaurants, shops, and supporting infrastructure. This is where my money is going now.
 

·
Registered
Joined
·
808 Posts
In my area, it seems like values went up uncontrollably for about 5 years then leveled off (2000 to 2005, I may be off a year or three). No way I could afford my house now that I bought in 1994. I can't see values going up like that again but dont think they will go down.
 

·
Registered
Joined
·
1,870 Posts
We own a beach house at San Luis Pass. We rent it out our selves through our web site and word of mouth. We are not trying to make a killing renting it out, just enough to help pay for the taxes and insurance which run about $8500 a year. Yes we have had problems with renters just like everyone else, but for the most part it's not that bad. We live in west Houston and it is less than a 2 hour drive to get here for us. We have rented it to several 2-coolers and I keep every ones e-mail address and send out specials to previous renters several times a year.This helps keep our rental base coming back. Winter time is the slowest time of the year with very few renters. We general don't start getting renters until March. Would I do it again, in a heart beat. We love it here.
 

·
Don't touch my junk, bro!
Joined
·
5,844 Posts
I don't own beach property, but I've been a vacation renter for the last three summers going. If you go the vacation rental route, here's some of my opinions
  • Keep the place well stocked with utensils and such. I hate getting somewhere and needing to buy a bottle opener or whatnot. Also, if I have to bring my own towels, blankets, sheets or whatever, I'm passing it up for another place.
  • Make sure its priced right. Summer 'fore last we rented in Duck, NC with 2 other families. I looked at one place, and passed on it, 'cause I found a better place literally across the street, for over a grand less (1 week rental). You're better off fully booked at the lower end of the price range, then empty at your preferred pricepoint.
  • Offer good renters a return discount. We almost went back to the place in Duck this past summer, because they offered us a 20% discount, but one of the families from last year is getting divorced :eek:h:
  • My Dad rented a place in Flordia for us and the kids over Thanksgiving. Beautiful little place, but it was decorated like a model home. Too much clutter + little kids...not 2cool....
  • Offer a military discount. 'Cause its the right thing to do.:brew2:
If I think of anything else, I'll let you know. I'm supposed to be balancing my checkbooks right now....:rotfl:
 
1 - 9 of 9 Posts
Top