Z3Dreamer
Thinks s/he gets paid by the post
Before I begin, I think the answer is that people purchase beach condos for the status, as I don't see that the numbers make sense.
Today, I could rent a 2 BR, 2 BA Oceanfront condo for maybe $900 - $1,200 a week for the last week in August. This is in North Myrtle Beach. A condo that can yield this kind of rent is in the $225,000 range. Of course, you can get condos cheaper and more expensive. I am just trying to match a weekly rental and a purchase price. Condo fees are going to be in the $800 per month range. Management fees run 35% to 45%. Those are the big expenses. You can guess maintenance and repair and utilities.
Lets say that you will rent solid from mid May to mid September. Furthermore, you are going to stay in the unit for 4 weeks in the off season. That leaves 28 weeks. During those weeks, between decreased rates and vacancies, you will pull in an average of $500 a week. Using these numbers and some estimates of other expenses, I get a profit of $2,000. Plus, I get 4 weeks stay, FREE! I have left out appreciation because I don't see enough appreciation in 5 to 10 years to offset the expenses of selling.
OR, I could take the earnings (60/40 AA) on $225,000. Maybe $10,000. And I could rent 4 prime weeks in a similar condo and pocket $6,000.
Again, people must do it for the status of saying I own a condo or they plan on using it a whole lot more than my example. Do not want hate from those that own and use for extended periods. Just trying to understand those that think they are making a profit and getting their vacation for free.
Today, I could rent a 2 BR, 2 BA Oceanfront condo for maybe $900 - $1,200 a week for the last week in August. This is in North Myrtle Beach. A condo that can yield this kind of rent is in the $225,000 range. Of course, you can get condos cheaper and more expensive. I am just trying to match a weekly rental and a purchase price. Condo fees are going to be in the $800 per month range. Management fees run 35% to 45%. Those are the big expenses. You can guess maintenance and repair and utilities.
Lets say that you will rent solid from mid May to mid September. Furthermore, you are going to stay in the unit for 4 weeks in the off season. That leaves 28 weeks. During those weeks, between decreased rates and vacancies, you will pull in an average of $500 a week. Using these numbers and some estimates of other expenses, I get a profit of $2,000. Plus, I get 4 weeks stay, FREE! I have left out appreciation because I don't see enough appreciation in 5 to 10 years to offset the expenses of selling.
OR, I could take the earnings (60/40 AA) on $225,000. Maybe $10,000. And I could rent 4 prime weeks in a similar condo and pocket $6,000.
Again, people must do it for the status of saying I own a condo or they plan on using it a whole lot more than my example. Do not want hate from those that own and use for extended periods. Just trying to understand those that think they are making a profit and getting their vacation for free.
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