Where to purchase affordable west coast 2nd home
May 31st, 2014, 04:57 AM
#1
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Where to purchase affordable west coast 2nd home
My husband and I are considering purchasing a 2nd home on the Florida west coast. We would like to use it several times a year ourselves with our kids and when we are not using it, rent it out on a weekly basis to vacationers.
We'd like 2 bedrooms. around 1000 sq. ft., near or within walking distance of the beach, convenient to amenities and activities, within a 1 hour drive of Tampa Airport and for a price tag.......................under $150k. Are we dreaming?
We would prefer a condo or a condo hotel, but are uncertain of what area to find these in that are within our price range. I believe Naples is definitely out of that range, but what about Clearwater Beach, St. Petes Beach, Sarasota or Sanibel.
We would appreciate anybody help and suggestions as to where to start. We'd like to start our search online before booking a trip down.
Thank you
We'd like 2 bedrooms. around 1000 sq. ft., near or within walking distance of the beach, convenient to amenities and activities, within a 1 hour drive of Tampa Airport and for a price tag.......................under $150k. Are we dreaming?
We would prefer a condo or a condo hotel, but are uncertain of what area to find these in that are within our price range. I believe Naples is definitely out of that range, but what about Clearwater Beach, St. Petes Beach, Sarasota or Sanibel.
We would appreciate anybody help and suggestions as to where to start. We'd like to start our search online before booking a trip down.
Thank you
May 31st, 2014, 05:42 AM
#2
Can't help since I live on the "best" (LOL) coast but just wanting you to be aware of the laws regarding tax collection on rentals:
http://dor.myflorida.com/dor/forms/current/gt800034.pdf
Never hurts to be informed of all the issues before making that big decision and good luck to you.
http://dor.myflorida.com/dor/forms/current/gt800034.pdf
Never hurts to be informed of all the issues before making that big decision and good luck to you.
May 31st, 2014, 06:00 AM
#3
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I still see listings for condos at 5800/5600/5500 Bonita Beach Road in Bonita Springs for around $160. These are very small, one bedroom apartments in several older towers across from the beach. I have never been in one, but the location is great. The closest airport would be SW Florida, which I love as it is so easy to access. I have a 2/2 condo about 10 minutes from the beach in Bonita and something similar would be within your $150K budget.
May 31st, 2014, 06:17 AM
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I'm not a Florida Real Estate expert but here's some suggestions on "where to start" that you can do without leaving your home:
1) First, use a website like Google Maps or Mapquest to scout out the area around Tampa to see what towns are within easy 1 hour drives of Tampa (the places you've already mentioned are some possibilities.
2) Do a google search using such topics as "Condos for sale, NAME OF TOWN", "Real Estate Agents, NAME OF TOWN", etc. and then review the links to get an idea of what's available in your price range.
Since most of the "real estate" websites you find will have "sorting" capabilities you should be able to quickly determine what you can get in each area for your $150,000. When you see a listing(s) that interests you use Google Maps Satellite and street views to zoom in on the property to get a feel for where the property is located and what it might look like.
Once you've narrowed down the possibilities try contacting a couple of the listing agents for more info on the properties in your price range. You'll probably find one or two agents that you can form a working relationship with to make your search easier.
Your now an informed shopper and ready to make an trip to Florida to start your actual "on the ground" search.
Keep in mind that a lot of people have your "dream" and there are lots of people out their who are "selling that area" so reality may be a bit different when you see it in person. Properties that look good in photos on the internet may not seem as nice in person. This is is not deception but rather just marketing.
Real Estate is all about "Location, Location, Location" and that drives the price. The closer you are to the beach, town, views and amenities the more you'll pay for a property.
I'm guessing that with a $150,000 budget for 1,000 sq.ft. 2BR apartment you are going to have to make some concessions on your wish list, most likely that will be in the form of the unit being smaller than 1,000 sq.ft., further from the beach or it will be an older, less attractive, property or even a combination of all three.
Lastly, you mentioned a desire to "rent it out on a weekly basis to vacationers". Keep in mind that "renters" want places in the best LOCATIONS (which translates into higher purchase prices for the unit) and they want to "vacation" during peak vacation times. If that's the same time you and your family are using the unit you'll miss out on lucrative rentals. Also, do not expect to rent out your unit 100% of the time you aren't there, especially if you plan to use the unit during peak vacation period). I live in a "vacation" oriented area and have a number of friends who rent out their properties. Most are rented for only a fraction of the time (maybe around 10 or 12 weeks out of the year) and they don't make a lot of money from the rentals. After paying rental & management fees, repair costs, replacing furniture damaged by tenants, cleaning fees, etc. they barely break even. Many of my friends stopped renting because it simply wasn't economical. You'll have to figure that out for yourself. One thing I can tell you is that everyone of my friends who rent out their homes say that you SHOULD NEVER rely on the rental income as a means to finance the purchase price of the unit itself. In other words, if you can't afford to purchase the home without using the rental income to help pay for the mortgage or upkeep on the property DON'T BUY IT.
Good luck following your dream.
1) First, use a website like Google Maps or Mapquest to scout out the area around Tampa to see what towns are within easy 1 hour drives of Tampa (the places you've already mentioned are some possibilities.
2) Do a google search using such topics as "Condos for sale, NAME OF TOWN", "Real Estate Agents, NAME OF TOWN", etc. and then review the links to get an idea of what's available in your price range.
Since most of the "real estate" websites you find will have "sorting" capabilities you should be able to quickly determine what you can get in each area for your $150,000. When you see a listing(s) that interests you use Google Maps Satellite and street views to zoom in on the property to get a feel for where the property is located and what it might look like.
Once you've narrowed down the possibilities try contacting a couple of the listing agents for more info on the properties in your price range. You'll probably find one or two agents that you can form a working relationship with to make your search easier.
Your now an informed shopper and ready to make an trip to Florida to start your actual "on the ground" search.
Keep in mind that a lot of people have your "dream" and there are lots of people out their who are "selling that area" so reality may be a bit different when you see it in person. Properties that look good in photos on the internet may not seem as nice in person. This is is not deception but rather just marketing.
Real Estate is all about "Location, Location, Location" and that drives the price. The closer you are to the beach, town, views and amenities the more you'll pay for a property.
I'm guessing that with a $150,000 budget for 1,000 sq.ft. 2BR apartment you are going to have to make some concessions on your wish list, most likely that will be in the form of the unit being smaller than 1,000 sq.ft., further from the beach or it will be an older, less attractive, property or even a combination of all three.
Lastly, you mentioned a desire to "rent it out on a weekly basis to vacationers". Keep in mind that "renters" want places in the best LOCATIONS (which translates into higher purchase prices for the unit) and they want to "vacation" during peak vacation times. If that's the same time you and your family are using the unit you'll miss out on lucrative rentals. Also, do not expect to rent out your unit 100% of the time you aren't there, especially if you plan to use the unit during peak vacation period). I live in a "vacation" oriented area and have a number of friends who rent out their properties. Most are rented for only a fraction of the time (maybe around 10 or 12 weeks out of the year) and they don't make a lot of money from the rentals. After paying rental & management fees, repair costs, replacing furniture damaged by tenants, cleaning fees, etc. they barely break even. Many of my friends stopped renting because it simply wasn't economical. You'll have to figure that out for yourself. One thing I can tell you is that everyone of my friends who rent out their homes say that you SHOULD NEVER rely on the rental income as a means to finance the purchase price of the unit itself. In other words, if you can't afford to purchase the home without using the rental income to help pay for the mortgage or upkeep on the property DON'T BUY IT.
Good luck following your dream.
May 31st, 2014, 06:55 AM
#5
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Check hoa fees. They can be very high here in Fl even on a 150,000 property.
I live on the best coast with Dukey and don't even like that side of Fl. Clark Howard says that buying second properties is a bad investment right now.
I live on the best coast with Dukey and don't even like that side of Fl. Clark Howard says that buying second properties is a bad investment right now.
May 31st, 2014, 08:58 AM
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A few questions:
You want to buy in an area you're unfamiliar with? Why?
You want to buy before renting to gain some familiarity? Why?
How are you going to advertise and manage the rental situation?
flpab is probably right about the bad investment, but I realize sometimes a second home isn't just about the investment potential; people have other reasons. If it's strictly about investment potential, go to Plan B.
You want to buy in an area you're unfamiliar with? Why?
You want to buy before renting to gain some familiarity? Why?
How are you going to advertise and manage the rental situation?
flpab is probably right about the bad investment, but I realize sometimes a second home isn't just about the investment potential; people have other reasons. If it's strictly about investment potential, go to Plan B.
May 31st, 2014, 09:37 AM
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This is a few years old, but it has lots of good info:
http://www.fodors.com/community/unit...ral-advice.cfm
I've rented in SE Florida for the winter for the past two years; there are plenty of decent condos there that would fit your price range, although most are a drive from the beach.
http://www.fodors.com/community/unit...ral-advice.cfm
I've rented in SE Florida for the winter for the past two years; there are plenty of decent condos there that would fit your price range, although most are a drive from the beach.
Jun 9th, 2014, 05:11 PM
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Thank you Dukey1. I appreciate the information you have given me. One can never have too much knowledge when embarking on a new adventure.
Thank you to the rest of you as well. You have given us a lot to think about. Our main reason for wanting to do this is so that we have a place to stay when we need a getaway. We thought it would be nice to rent it out when we are not using it and just work around the rental schedule.
We will continue our research.
Thank you to the rest of you as well. You have given us a lot to think about. Our main reason for wanting to do this is so that we have a place to stay when we need a getaway. We thought it would be nice to rent it out when we are not using it and just work around the rental schedule.
We will continue our research.
Jun 9th, 2014, 10:22 PM
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I have spent the last 6 months studying the area you are speaking of - 1 hr from Tpa airport. But, I want to live in mine. Here are some comments. You will not likely get space you mention and close to the beach (depending upon what you call close to the beach.) in that price range. Some things to look out for ... if a condo, do they allow rentals. And many of the condos are limited to ages 55 plus.
I use Zillow to keep track of what the market is doing. If you locate a couple of zip codes you can easily do this. AND if you had done it 6 months ago, it was possible but the FL market you are speaking of (within 1 hr of Tpa airport) has jumped. Yes, it was deliberate between the banks and I'm sure, pushed by the realtors. But you cannot predict 6 months from now. But if you are serious, get on Zillow and follow what is happening.
I use Zillow to keep track of what the market is doing. If you locate a couple of zip codes you can easily do this. AND if you had done it 6 months ago, it was possible but the FL market you are speaking of (within 1 hr of Tpa airport) has jumped. Yes, it was deliberate between the banks and I'm sure, pushed by the realtors. But you cannot predict 6 months from now. But if you are serious, get on Zillow and follow what is happening.
