Investment - Rental property in the Villages

[Moemg]

I went on VRBO and saw a ton of rentals in the Villages .I think a lot of people had the same idea but IMO it is a bad idea . The Villages will only attract a certain type of people who want all those facilities and do not mind being no where near a beach . In the meantime you are paying for all the extras in Homeowner's fees which are probably sky high .

 

[HadEnuff]

I went on VRBO and saw a ton of rentals in the Villages .I think a lot of people had the same idea but IMO it is a bad idea . The Villages will only attract a certain type of people who want all those facilities and do not mind being no where near a beach . In the meantime you are paying for all the extras in Homeowner's fees which are probably sky high .

As someone who has used VRBO to find a winter rental, I can speak to this: Yes there are tons of rentals available, but not easily found for Jan-March.You can find them but it takes a lot of digging, and it ain't necessarily cheap.

I have spoken to people who own places in TV, and while they would love to generate some income in the "off" months, they tell me that it's hardly worth it for the summer months, as wear and tear, and AC costs eat up what little money you can get, trying to rent the property.

 

[kgtest]

Key pts, been to the villages a few times over past few years.

Build-out is far from done, the owners of TV will build forever, with aspirations all the way to Orlando! They are popping up a new village right now, there were 3 and will now be 4. This concept seems to keep the pyramid going, as folks from older subs can drive over to newer amenities.

Lots of golfing and nice amenities depending on which sub you are in.

Seems like there is a good mix of 55-90 yr olds which is a huge age difference.

Most rent for the three month high season, and do not break-up months until they have to.

I thought about owning here, and down in naples, but I keep putting my money into mr market. Less emotional for now.

 

[FreeBear]

My viewpoint - I am not interested in living in the Villages nor being a landlord. I don't think a rental home is a good investment for us. I am concerned we would be stuck with the property, the value would diminish and I would end of retiring in a location I don't want to be. I want him to spend part of his winter's in FL (his dream) either by renting for a month and/or staying with his brother a couple times. Brother and his wife are open to this. I have no problem being home working while he enjoys himself. He earned it and he deserves it.

Well, this (in bold) says it all. In my mind, if you really don't want to be a landlord, regardless the reason, then that should be the bottom line. Happy wife, happy life! Don't ask how I know...

I get that he wants to escape to FL for the winter, and it can be a challenge to find something decent during prime time. Friends spend $4K/month renting a house for 3-4 months near the Gulf. He had to agree to 4 months to lot in a lease; seems like a seller's market during peak season. Maybe it would be easier and cheaper to find just a small condo.

Has your husband wintered in FL much?? I agree with the suggestions to rent and/or live with his brother a few times before even thinking about buying a place. Local knowledge is precious.

We just got back from SE Arizona. Wondered if it would be nice to eventually relocate to escape the northern winters. Well, the places that we would even consider buying cost more there (say Tucson) than they would in our overpriced midwestern metro area. After spending a month down there, we would certainly visit again, but less inclined to stay several months, let along buy a place. Dreams are often most vivid from far away....

Last year, we were dreaming of coastal TX. Got to know some of the friendly locals too during a few weeks weeks of snow birding. Were thinking, maybe "we would do this". After the 2017 hurricane, we're thankful it was only a passing fancy...

 

[Scuba]

Well, this (in bold) says it all. In my mind, if you really don't want to be a landlord, regardless the reason, then that should be the bottom line. Happy wife, happy life! Don't ask how I know...



I get that he wants to escape to FL for the winter, and it can be a challenge to find something decent during prime time. Friends spend $4K/month renting a house for 3-4 months near the Gulf. He had to agree to 4 months to lot in a lease; seems like a seller's market during peak season. Maybe it would be easier and cheaper to find just a small condo.



Has your husband wintered in FL much?? I agree with the suggestions to rent and/or live with his brother a few times before even thinking about buying a place. Local knowledge is precious.



We just got back from SE Arizona. Wondered if it would be nice to eventually relocate to escape the northern winters. Well, the places that we would even consider buying cost more there (say Tucson) than they would in our overpriced midwestern metro area. After spending a month down there, we would certainly visit again, but less inclined to stay several months, let along buy a place. Dreams are often most vivid from far away....



Last year, we were dreaming of coastal TX. Got to know some of the friendly locals too during a few weeks weeks of snow birding. Were thinking, maybe "we would do this". After the 2017 hurricane, we're thankful it was only a passing fancy...

We had a similar experience. We spent 3 months in the US Virgin Islands to celebrate our retirement last year. We loved it so much that we considered renting out our CA property and going down again for a year or more to see if we’d like to have a second home there or just move there. Then Hurricanes Irma and Maria hit - double whammy - and we were so grateful we hadn’t been impulsive.

 

[HadEnuff]

Key pts, been to the villages a few times over past few years.

Build-out is far from done, the owners of TV will build forever, with aspirations all the way to Orlando! They are popping up a new village right now, there were 3 and will now be 4. This concept seems to keep the pyramid going, as folks from older subs can drive over to newer amenities.

Lots of golfing and nice amenities depending on which sub you are in.

Seems like there is a good mix of 55-90 yr olds which is a huge age difference.

Most rent for the three month high season, and do not break-up months until they have to.

I thought about owning here, and down in naples, but I keep putting my money into mr market. Less emotional for now.

Are you snowbirding?

 

[MrLoco]

OP, I can sum up what this investment will most likely lead to in one word; HEADACHE!!!
BEing a long distance landlord can be an expensive adventure.
Does not sound like your husband wants to make the commitment to deal with all the issues that could develop with owning rental property.
A better idea might be to invest the $250k in a tax managed balanced fund: 50% munis and 50% large cap stocks. USe the dividends plus some earnings every year to pay for a trip to Florida and still probably have a decent capital gain down the road.

 

[GravitySucks]

I don’t know enough inputs to know if it’s a good investment, but the mere fact that you are not excited tells me it’s a bad idea...the kind of thing that could cause long term resentments. One potential option is to put $250k into any number of CDs yielding 3%. You’ll get $7,500 annual interest. You could give DH $6,000 of that as his “visit Florida anytime” slush fund, save the rest and know with confidence you won’t lose your $250k or deal with the many headaches and expenditures that come with out of state property ownership.

+1
I was considering buying a place in Ocean Lakes but ran the numbers with some of the local owners i met there and decided it didn't work out. Second week there this January a freeze hit and I saw about 50 places have their pipes burst. Local plumbers made out well; Owners not so much.

 

[MarieIG]

Sounds awful. I would tell your DH to visit with his brother for a month during the winters. He can buy groceries and take them out to eat a few times a week. Seriously, if you end up working to pay costs when that house needs a new roof, you won't be happy.

 

[Ohio Tealady]

Thank you all for your thoughtful comments. Lots of angles I did not consider.

Let me say that my husband is a sweetheart and is not being devious in getting an investment/vacation home. He has suggested this could be a short term investment and we could sell it and purchase a vacation home in a different location when I retire.


I think Flintnational said it best:

I learned the hard way to separate my lifestyle decisions from my investment decisions. Two questions that might help you sort out the answer.

1) Lifestyle Option- Would your husband still buy the house without the investment potential?

2) Investment Option- Would this make a good investment without the second home potential?

If you combine the decision, two "no's" could end up being a "yes". In my opinion, the decision should be solely one reason or the other.


FreeBear wrote:

Well, this (in bold) says it all. In my mind, if you really don't want to be a landlord, regardless the reason, then that should be the bottom line. Happy wife, happy life! Don't ask how I know...

Quite right, I do not. My parents had rental property in the very best of circumstances - next door with my Dad being very handy and routinely doing maintenance. But I remember negative aspects also and how this would upset my parents.

Good information about the management companies nickle and diming you. I think many of you are correct that one can count on 3 months for a rental during high season and maybe 1 or 2 additional months but not 12 months of occupancy.

I really don't want to have a rental but I am 100% for my husband to take 1-2 week trips several times over the winter. I am also willing to vacation with him myself during part of that time. Who knows, perhaps after I spend time there, I might like TV. We can also start scouting out other locations which would be a compromise community.

Thanks again! This online community is such a knowledgeable and generous group of individuals with your thoughts and experience.

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