{"id":16834,"date":"2020-09-02T06:58:31","date_gmt":"2020-09-02T13:58:31","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=16834"},"modified":"2020-09-02T06:58:31","modified_gmt":"2020-09-02T13:58:31","slug":"vacation-rental-investing-perdido-key-fl-purple-parrot","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16834\/vacation-rental-investing-perdido-key-fl-purple-parrot\/","title":{"rendered":"Vacation Rental Investing: Perdido Key, FL– Purple Parrot"},"content":{"rendered":"

How about a vacation property, on Perdido Key, Pensacola, Florida, which cash-flows with just 25% down payment?<\/p>\n

This Realtor-listed property sold<\/a> for $238,000 in November of 2019 and this FSBO sold<\/a> for $242,500, two weeks ago.\u00a0 Both properties are 2 BR 2.5 bath bungalows and are in the Purple Parrot Village Resort<\/a>, a community of about 150 bungalows on the east end of Perdido Key<\/a>, walking distance to Johnson State Beach<\/a>, a half-dozen restaurants, and less than 10-minute drive to two golf courses, a dozen restaurants, Big Lagoon State Park<\/a>, and the world-famous Flora-Bama Bar and Marin<\/a>a on the Alabama state line.\"\"<\/p>\n

While there are no similar properties listed now, a few of the 2BR, 2.5 BA bungalows turn over each year and its; likely that one of these can be purchased for less than $245,000.\u00a0 Let me walk you through how I analyze\u00a0 or “screen” properties like this one for investing purposes:<\/p>\n

I star by using the public-facing rental calculator<\/a> on the Vacasa website to get a rough annual income estimate.\u00a0 When adjusted for the amenities, it shows $45,000.\u00a0 That is above the average for the area so I adjust downwards (to the average) to arrive at $39,000.\u00a0 Vacasa (and most other vacation property management companies) charge a 30% management fee so our adjusted annual income will be $27,300<\/p>\n

We plug in the following annual expenses:<\/p>\n

$1500\u00a0 for Repairs\/Maintenance
\n$2800\u00a0 for taxes
\n$8400\u00a0 for HOA fees
\n$\u00a0 300\u00a0 for insurance
\n$10,788 to cover the 30-year fixed rate mortgage, for $183,750, at 4.125% (4.38% APR)<\/p>\n

As a Vacasa-Certified Real Estate Broker<\/a>, I have access to some pretty nice analytical tools so here are the numbers in a nice report.<\/a><\/p>\n

The down-payment plus closing costs will cost you approximately $66,000 and, while it’s not uncommon to purchase these properties furnished, you may want to spend $5,000-10,000 changing\/updating the furnishings.\u00a0 Your investment then, should be around $75,000.<\/p>\n

I can’t predict the future but I do think these properties will double in value over the next 20 years.\u00a0 Let’s assume it only appreciates at less than 3% annually and, in 20 years, sells for $375,000.\u00a0 If we assume selling costs of approximately 8%, that should net Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

How about a vacation property, on Perdido Key, Pensacola, Florida, which cash-flows with just 25% down payment? This Realtor-listed property sold for $238,000 in November of 2019 and this FSBO sold for $242,500, two weeks ago.\u00a0 Both properties are 2 BR 2.5 bath bungalows and are in the Purple Parrot Village Resort, a community of […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,26,5],"tags":[],"class_list":{"0":"post-16834","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":6781,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6781\/saint-badda-bing\/","url_meta":{"origin":16834,"position":0},"title":"Saint Badda Bing","author":"Geno Petro","date":"February 2, 2009","format":false,"excerpt":"I know someone who knows a guy who might know of a 'pocket listing'\u00a0 back in the old neighborhood. 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