Buying a beach rental property?

[Happy Panther]

Because you're at best insured for replacement cost of the structure. In the case of beach front property the land itself can be worth 3 or 4 times the value of the house that's on it. In this case the fellow was left with a lot that was half submerged and the they wouldn't let him rebuild. If you cant put a house back on the property you have to come up with a way to cover the million-five lot that you still hold a loan on.

I'm not sure how NC works but many states say that a total loss means you get paid the policy limits. So just make sure you have appropriate limits.

If that is not the case then yeah you are screwed.

I wouldn't get a house directly on the beach anyway.

[Hairless Cat]

wind, hail, and flooding policy on a friends $150,000 fixer upper on Oak Island is over $1500 alone- not counting the regular homeowners insurance - they are well back from the beach front.

[g5jamz]

also...if you're doing it alone...fine.

If you plan to pull in "investors" that might be family/friends? The rule applies where "why you don't run a business with family" here.

[Happy Panther]

That's fine. I'm not worried about my land falling into the sea.

A second home is a complete luxury and i would have no thoughts that I would make money off of it.

[CRA]

.

I wouldn't get a house directly on the beach anyway.

good idea. As long as it is easy walking distance it is still an ideal beach house.

[Happy Panther]

also...if you're doing it alone...fine.

If you plan to pull in "investors" that might be family/friends? The rule applies where "why you don't run a business with family" here.

Yeah so part of the reason for this thread is that a family member bought a house in avon and went halfsies with friends.

He has done the math and expects to break even.

But the whole going in with another couple would worry me. I would have a strict legal contract in place and frankly be ready to go to battle if stuff gos sour.

Which means I would do it myself...

[Happy Panther]

good idea. As long as it is easy walking distance it is still an ideal beach house.

Every year we do "semi-oceanfront" which is generally directly across the street from an ocean front home.

Frankly the kids like the pool better than the beach and the houses are so much nicer...

[thefuzz]

HP, have you talked to a bank about 2nd home mortgages and interest rates.

The down payment is going to be stiff for a 2nd home/investment property, especially in an area that is trending downward.

Personally, if I were going to buy a house for that kinda cash I would do it at Wrightsville Beach.

[Happy Panther]

HP, have you talked to a bank about 2nd home mortgages and interest rates.

The down payment is going to be stiff for a 2nd home/investment property, especially in an area that is trending downward.

Personally, if I were going to buy a house for that kinda cash I would do it at Wrightsville Beach.

Yeah I have looked into it. I would want to have a hefty down payment anyway as well as a bunch of cash set aside to make it the way I like it.

And I would be getting into jumbo rates, investment property rates as well as losing interest deductibility...

its 10 years away

[Happy Panther]

Personally, if I were going to buy a house for that kinda cash I would do it at Wrightsville Beach.

I dunno man. there are some real weirdos from there who post here...

[thefuzz]

Good call.

So you are thinking about buying it 10 years from now???

Or you are retiring in 10 years?

[Happy Panther]

Good call.

So you are thinking about buying it 10 years from now???

Or you are retiring in 10 years?

I would love to be able to think about it in 5. Maybe something smaller.

I have a solid 15-20 years before retirement.

Own my own company so maybe it will take off :cheers2:

[thefuzz]

I got confused.

I thought you were looking to purchase now, then rent it out, and then retire there in a couple of years.

Didn't know you were talking about long term.

The real estate landscape will not look anything like it does today, even 3 years from now. Planning long term could prove to be tough to do.

[Happy Panther]

I got confused.

I thought you were looking to purchase now, then rent it out, and then retire there in a couple of years.

Didn't know you were talking about long term.

The real estate landscape will not look anything like it does today, even 3 years from now. Planning long term could prove to be tough to do.

Nah i stated in the OP that I don't have a down payment right now. I want a big house so all the family that usually comes to the beach can still come.

If I wanted to do a 2 bedroom condo or something that would be different...