Will a beach condo/house cash flow the mortgage

if you rent that bastard out ??

 

It can. I know people who've done it. Of course there's risk you can't rent the damn thing out!

 

Well a condo on a Lake Norman beach might be a tough one.

 

Yeah, I mean if you have it with a local rental management company or whatever who'll take care of the rental, cleaning, etc.

 

there's a two bedroom fixer-upper next door to Eddies. no beach but there is eight feet of lake frontage, a tree with a tire swing and a canoe.

 

Does it come with any discounts on the blue plate specials?

 

I have heard that you should owe no more than 80% of the value on a rental to make it cash flow, just as a general rule. Getting enough rent to cover the payment is one thing but you also have to consider property taxes and repairs and maintenance. A beach house is going to require a lot of maintenance anyway and renting it out will make this worse.

I have thought of trying this in the past but never got that far with it. If you could make it work and managed to have a beach house that costs you little or nothing then it would be very appealing.

 

I talk to people all the time that want to do 100% financing on investment properties. The rate blows, the payment is high, and with escrows...they can't rent it out at a high enough amount.

The beach MAY be different, I don't know...but I'd bet it's the same.

 

It depends on what you are getting out of it too. If you can keep it free of renters long enough for you to use it enough to make it worth your time then maybe you can live with making a few payments out of your pocket.

 

Fuck rentals. Take the cash you'd put down on a rental and invest it here:

VWELX

Then pay rent when you actually goto the beach, and don't have to fuck with the hassle of 'ownership.'

I'd say it's different if you can pay cash for the property, or aren't bothered by several thousand monthly in potential negative cashflow, which I guess is not your situation or else you wouldn't have asked a question about cashflow.

Basically, if you need the cashflow, it's too risky. There are safer investments that aren't huge expenses marketed as investments. I've done spreadsheets on these, b/c it sounds great, particularly with a family, and it's always a really expensive thing, and what I really want is a vacation, which is cheaper.