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Ultimate Guide To: Top Income Producing One Bedroom Condos in Gulf Shores & Orange Beach | Part 2

 

Without Further Ado…

Before we get started, it’s important to keep in mind- It is likely that the condo’s that produced the highest income, also had updated interior/ appliances etc.  Renters are spending anywhere from $200-$300 per night in some of these condos and expect to get what they are paying for.  This is not to say that a condo with average interior won’t rent well.  It will.  But your nightly rental rate will need to accommodate the interior condition accordingly.  The lower nightly rate will certainly garner renters who are not wanting to spend top dollar.  There are both positives and negatives for you to consider when thinking about your condo rental furnishings.  Either way, please remember these numbers are that of individual condos.  Not all condos are equal.

5). Caribbean: $29k

Caribbean Condo is located: 1057 West Beach Blvd. Gulf Shores.  This low density complex was built in 2000.  West Beach is convenient to the heart of Gulf Shores, with many shops and restaurants within walking distance.

There are not currently any 1 bedrooms listed for sale in the Caribbean complex.  The most recent one bedroom closed in February 2017.  The selling price at that time was $270,000.  This particular unit sold at 93{21fd5c4e01e29521095b8da75d82adfac7b7b997f9f72aa45032cd25125086c0} of list price after 170 Days on the market (DOM).

4). Lei Lani Tower: $29-30k

Lei Lani Tower is located: 28814 Perdido Beach Blvd, Orange Beach.

Again, at the time of this post there are two 1 bedroom condos currently available for sale in this Orange Beach Beach Front Complex.  This condo has 49 units units and was built in the Mid-1980’s.

Unit # 402: $279,900

Unit # 306: $283,500

Monthly COA Fee: $263

 

3.) Beach Club: $30-32k

The Beach Club which was built between 1998 and 2002 is located in the area of Gulf Shores known as Fort Morgan.  Fort Morgan is located west down Hwy 182.  The physical address to The Beach Club is 527 Beach Club Trail, Gulf Shores.  The Beach Club consists of 3 separate towers.  A, C, and D- also known as: Avalon, Catalina and Doral.  When first starting out in Real Estate in 2007, the Broker I worked for always said the best investment was 1 bedroom at The Beach Club.  This complex, although located down Fort Morgan, is a one stop shop.  There are multiple pools, fitness center, spa, tennis, restaurants, shops etc.

There is currently only one 1 bedroom unit listed for sale at The Beach club. It is located in the Catalina Tower.

Unit # 1002C : $318,500

Monthly Condo Fee: $310

 

2.) Tradewinds: $31-32k

Tradewinds Condo is located: 24568 Perdido Beach Blvd., Orange Beach.

This low density complex built in 1999, has an indoor/outdoor pool and like the rest of the units I have showcased is Gulf Front.  There is one, 1 bedroom available for sale- listed at $255,000 which is an incredible deal if you are able to pull an income of just over $30k.  Dues are reasonable at $349/mo.

Unit # 608 : $255,000  UPDATE: The Listing Agent REMOVED this listing from the market. 10/2/17.  If interested in this condo, contact me and I will try to contact the owner to see if they are still interested in selling.

 

 

1). The Lighthouse: $36-48k

The Lighthouse condo is located: 455 E Beach Blvd, Gulf Shores.

The new Lighthouse condo stands in place of the original Lighthouse Inn- which was much smaller, much like how Gulf Shores of the past used to be.  Our area has seen considerable growth, and with that growth many new and large condo complexes.  While our sleepy little beach town isn’t so sleepy anymore and many people miss the days of the “Lighthouse Inn,” the growth has been good for those wishing to invest in real estate in Gulf Shores and Orange Beach.

photo cred: Daryl Hogeland

Although your original investment price on a Lighthouse Condo is going to be higher than the aforementioned 1 bedroom units in Gulf Shores and Orange Beach, if you are able to turn almost $50k with a 1 bedroom- there is something to be said for that!  Even at 40k you are knocking the socks off of most other 1 bedroom units on the market.  The Lighthouse condo has a fantastic location and is in the heart of Gulf Shores.  You are in easy walking distance of the beach shops and popular beach side restaurants.  You are close to all of the beach “buzz.”

This complex has an indoor and outdoor beachside pools and a fitness center. There are 251 total units, 18 floors and it was completed in 2006.  The 1 bedroom units are spacious with 875 square feet- as compared to the typical 600 sq ft 1 bedroom.

There is currently ONE 1 bedroom Lighthouse Condo listed for sale.

Unit # 817 : $440,000

Condo Fee: $375

This unit has been on the market for over 400 days.  In our current market, Gulf Front Condos are not staying on the market long when priced right.  It is safe to say, due to this fact, that this condo is probably slightly overpriced at $440,000.  There have not been any price reductions since this property listed 440 days ago, which also leads me to believe the owner isn’t really in a hurry to sell.  But who knows? There is nothing lost in tossing an offer their way.  Email me if you are interested in finding out exactly how much this exact condo pulled in last year- and what’s on the books More Points to Consider in Buying a Condo as an Investment:

My Pick for Best Buy:

Considering all 10 of the 1 bedroom condo complexes showcased in both this post, and the previous– (without doing any research of the HOA, or having any knowledge of current or pending assessments), I think that The Tradewinds condo currently listed for $255,000 would be a great buy for anyone wanting to purchase for investment purposes.  The list price may be a bit high based on the following info: This condo has been on the market at just over a year.  The current median for Days on the Market for Gulf Front 1 bedroom Condos, that have closed over the last 6 months is : 72 days.  There are only 7 photos of this unit of which I can only gather that the unit has not been updated in some time.  The owner has not decreased their list price (in fact they increased it by 5,000 since listing it). The last 1 Bedroom unit to close in  the Tradewinds condo complex in Orange Beach, took place in May 2017 and closed for $236k.  The unit was updated with granite in the kitchen and bath and had up to date furnishings.

Should a buyer be able to make a reasonable offer on this unit, that is accepted and then update the unit with new bedding, and a few other cosmetic improvements- this unit could make a good rental.

Investors: If you would like me to get in to this unit, get some more (and better quality) photos- as well as some pricing on what it would take to spruce this unit up- let me know!

How Strong is the HOA?

When considering ANY condo for purchase, investment or private use- We will request condo docs.  We will be looking at the HOA or COA’s Financials.  Are there strong reserves?  Are there any known upcoming assessments?  Are there any recent assessment passed that will affect the new buyer?  If there are financial troubles with the HOA, it is probably a good idea to steer clear- Unless you have the financial means to offset any surprise expenses that could be thrown at you.

Will you be Obtaining Financing for your Investment Condo?

Getting a loan for an investment beach condo, is not the same as getting a loan for a primary residence.  The bank has many more stipulations.  Although I am not an expert in lending, My friend Devin at Gulf States Financial has a good post about some of the blips you may run into when trying to obtain Investment Condo Financing.  Check that post out for more info on those stipulations.

Also, in some cases you MAY be able to use the income of the condo that you are purchasing – to help with qualifying for your investment loan.

Are you Ready to Start Looking for your Beach Front Condo Investment?

Shoot me a message, call or text. Even if you just have more questions that I can help clear up for you, I’d be happy to do so.  I look forward to helping you build your Gulf Shores and Orange Beach Condo Investment portfolio!

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Are these Home Buying Myths Holding you Back?

So You are Ready to become a First Time Home-Buyer.

Congratulations!  This is a big and exciting step! Not only do you earn the Pride and Joy of owning your very own home, but you also get to start building on your future.  It is your first home, that often gives you the ability and equity to afford to grow in home ownership as your family grows.  But with buying a home, sometimes there are some misconceptions that should be cleared up:

1. The first step is searching for a home.

I know it’s exciting to get out and start the house hunting.  As your Realtor- I love nothing more!  It is fun to get out and see what is available.  It’s fantastic to find that perfect one.  But how frustrating would it be, if you thought you found that “perfect one” for $250,000, but later found out you only qualify for $200,000?  What a disappointing moment.  Because of this- it’s important that your first step in the home buying process is: To speak with a lender.  I can send you an online application that you can complete anytime day or night to get that ball rolling.  You can have your pre-approval letter in hand the very next day- and with that we will be armed to make an offer on the RIGHT home for you!

2. You don’t need a Real Estate Agent.

For starters, it is customary in our area of Alabama- Baldwin County- Both the buyer and seller agent fees are paid by the Seller.  So as the buyer, you are able to utilize the professional services of a real estate agent for free. Having a real estate agent working for you, you will have access to all of the latest real estate listings and newest price reductions as they occur.  The websites online like Zillow and Trulia may seem handy to a buyer, but oftentimes there are many inaccuracies like homes that are no longer on the market, erroneous prices, and sometimes even scam listing.  With a Realtor you will also have protection when it comes to writing and negotiating contracts.   There is no reason for a buyer NOT to use an Agent- For FREE!

3. If you have Bad Credit, you may as well forget it.

If you have a credit score anywhere from the low 500’s there is a chance home ownership may not be too far off for you.   I can help you connect with the right lender who may be able to get you approved. If an approval isn’t immediate for you, my lender can give you pointers and a roadmap after reviewing your credit, to allow for some quick credit fixes that can often raise your score within 60-90 days.  It is always in your best interest and will save your pocketbook some extra interest the higher your credit score is.

4. Be prepared to put at least 10{21fd5c4e01e29521095b8da75d82adfac7b7b997f9f72aa45032cd25125086c0} down.

Think you have to sell an arm and a leg to buy a home? Not at all! An FHA loan only requires 3.5{21fd5c4e01e29521095b8da75d82adfac7b7b997f9f72aa45032cd25125086c0} while a conventional historically only requires 5{21fd5c4e01e29521095b8da75d82adfac7b7b997f9f72aa45032cd25125086c0}, my lender JUST gave me some info on a new conventional loan he has available to buyers with good credit, for only 1{21fd5c4e01e29521095b8da75d82adfac7b7b997f9f72aa45032cd25125086c0} down!!  There are also programs that can potentially help you with down payment assistance, allowing low to No money down. USDA and VA loans are the most popular 0{21fd5c4e01e29521095b8da75d82adfac7b7b997f9f72aa45032cd25125086c0} down programs. If you qualify, this can take a big chunk off the amount of cash you have to bring to the closing table.

5. You only need enough money for a down payment at closing.

This is one of the biggest misconceptions. There is a lot of cost that goes into buying a home, and that includes upfront costs. One of the mandatory costs are a termite and appraisal. If you are getting a mortgage, the home will have to appraise as well as require a  letter stating there are no termites in the home. A termite letter can run around $200 in our area. An appraisal can range from $500-$700 dollars. Aside from your down payment, you then have to pay for closing costs. These are the costs incurred by the title and mortgage companies for doing the prep work involved in getting you to the closing table.  Closing costs can range anywhere between 3-6{21fd5c4e01e29521095b8da75d82adfac7b7b997f9f72aa45032cd25125086c0} of the purchase price.

Often times some of these costs  can be negotiated in the purchase contract.  You may be able to get the seller to agree to cover some of these costs if you bring a good enough offer to the table.  This can be discussed with your agent on a case by case agent and decided at the time of the offer it is wise or not.

One of my favorite things to do as a Realtor is to work with first time home buyers.  I once was a single Mom, and had a great agent work really hard to help me get in my first home.  I would love to be able to be that person for you.  If you are searching for your first home anywhere in Baldwin County Alabama, please give me a call, text or email today! 251-609-4434

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Your Pride and Joy | Your New Home

There is no Better Feeling than Buying your First

Home.

Everyone dreams of it.  It’s something everyone wants.  Home ownership.  If you have yet to experience owning your own home, I will be the first to tell you, there is no better feeling.  I will admit, it can be a bit overwhelming at the closing table.  The MOUND of paperwork you are facing may seem a bit like you are signing your life away.  But in all actuality, this is where life can really BEGIN.

So yes, you probably had to sign your name easily 100 times, but with each signature you know you are closer to having the keys to your new home- YOUR VERY OWN home handed to you.  The drive from the closing to your new home is filled with much awaited excitement- to turn the lock and have the door open, it is yours.  Bye- bye mean old landlord, bye bye astronomical pet fees, and see ya- wouldn’t want to be ya- to the stoner neighbor that played his music way too loud, way too late.

And then the  joy of looking at all of your boxes.  Those pain in the butt boxes that took forever to pack and seal, are now exciting.  Where to put all of your belongings? Choosing their new location ever so precisely- it’s all just a great great feeling.

While home ownership does come with added responsibilities and sometimes added costs (when the refrigerator breaks down or the AC isn’t cooling so well), you will also be building equity.  Each payment you make will be socking away just a little bit more than the previous.  As the years go on, your payment will be helping more and more towards your retirement.  Knowing that you are building towards your future, and not Mr. Landlord’s is so self satisfying.

Home ownership also means new and lasting memories.  Think back to when you were a child.  Think about your home.  Are your memories fond? I hope that they were.  I can remember the rust colored shag carpet and the long hallway to my bedroom, I remember how my childhood home smelled.  I remember laying in bed with the windows open at night, feeling the cool evening breeze and listening to the locusts hum.  There is just something about having a home that burns images deep into your memory.  Because it was yours and no one else’s. It feels safe, and most importantly (especially to a child) it feels secure.

If you have been yearning for the feeling of owning your very own little slice of security anywhere in Baldwin County Alabama- get in touch, I’d love nothing more than to be the person that helps make that dream come true.  If the thought of home ownership is a little scary, or you think there are reasons you can’t own a home, check out my post about how sometimes there are myths about buying a house that aren’t necessarily true- Home ownership is possible for everyone if it’s something you really want.

251-609-4434

 

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Ultimate Guide To: Top Income Producing Condos in Gulf Shores & Orange Beach: Part I

So You’re Thinking of Buying an Investment Condo at the Beach…

Where to start? If you are new to this, you have come to the right place.  In this post I will cover my review of the top income producing ONE BEDROOM condos in Gulf Shores and Orange Beach Alabama.  One bedroom units are often the best place for first time investors, as they require the lowest initial investment.

Please keep in mind: I have collected this data from various rental management companies in the area.  The income numbers provided to me are not guaranteed, and events can and have occurred that can disrupt income producing properties for a period of time.

With that information out of the way, I will present to you my short list of 1 bedroom condos and their average income earned in 2016.  (When 2017 comes to a close, I will post a side-by-side comparison for you.

10.) Palm Beach: $26-31k

This beautifully landscaped condo complex sits right on the edge of Orange Beach as you are leaving Gulf Shores.  The complex was built in 2001 and houses 100 units.

Unit # 14-D: $334,500

The 1 bedroom units in Palm Beach are sized a bit larger than typical one bedroom units boasting of over 800 square feet.  There is currently 1, One Bedroom condo available for sale in the complex.

 

9.) Tropic Isles: $26-32k

Tropic Isles Condo is located at: 433 West Beach Blvd in Gulf Shores. There are 40 units in this complex.  Tropic Isles was built in 2000.

The average income in 2016 was $26,000 while the high income I gathered came in at $32,000.  There are currently NO 1 bedroom condos available for sale at Tropic Isles.  However, the last 1 bedroom closed only yesterday (9/25/2017) and sold for $286,000.  The selling agent also reported that that particular top floor unit rented solely using VRBO (no management company) and pulled in $31,000 in 2016 with $25,000 already on the books for 2017.  The unit spent a short 5 days on the market!  Reported monthly fees at Tropic Isles are: $320.

 

8). Royal Palms: $29-33k

Royal Palms Condo is located at: 561 E Beach Blvd in Gulf Shores.  There are 101 units and the complex was built in 2000.

The average and high incomes nearly mirror Tropic Isles.  Also like Tropic Isles, there are currently NO 1 bedroom condos available for sale in the Royal Palms complex. Turnover in Royal Palms is low and the most recent 1 bedroom to close was nearly a year ago on: 12/5/16 for $275,000 after 90 days on the market (DOM).  Sidenote: If there is a condo complex that does not have any units available for sale- but you are sure it is the building you want to buy in- please email me, I will get on the horn and start trying to drum up a willing seller for you!

 

7). Emerald Skye: $28-33k

Emerald Skye Condo is located: 26034 Perdido Beach Blvd, Orange Beach.  This low density complex with only 36 units was built in 1996.

Currently Available for sale:

Unit #R21 List Price: $256,000

Unit #R14 List Price: $264,000

Condo Fee: $440 / mo

 

6). Clearwater: $28-35k

Clearwater Condo is located at: 517 E. Beach Blvd. Another low density complex with 32 units, Clearwater was built in 1998.

Currently available for sale:

Unit #2B

Unit #4B

Both units are currently listed @ $269,000.  The published monthly condo fee is: $488.00

 

Watch for Part 2 of this segment– containing the top 5 income producing 1 bedroom condos- coming up next…

In the meantime, here is some food for thought, when thinking about buying a condo in Gulf Shores or Orange Beach for investment.

Other monthly holding costs to consider:

Keep in mind, along with your mortgage (if you have one), taxes, and monthly condo fees, you will also likely have your monthly electric, and personal/contents insurance policy.  There is also the chance of a special assessment should the association decide to make a large improvement, or if large amount of damage is sustained etc.   If you did not purchase your condo furnished, you will need to purchase furnishings.  If the unit was furnished and in a rental program prior you should have minimal items to purchase, but some rental companies require their units to have certain things in each unit. For example: Crockpot, Blender, Coffee Maker etc.  Repairs to appliances, and sometimes replacing items in your unit may be needed as well.  Lastly let’s not forget management fees- should you choose to hand your condo over to a manager.

 

To Pay a Management company or Not?

The above rental numbers quoted are prior to any management fees being taken out should you have a management company handle the logistics of making your reservations, coordinating your cleaner etc.  IF you have the time available to handle all rental inquiries, reservations, check ins/outs, maintenance, cleans yourself- VRBO is a good way to go to save on the management fee- but may not produce quite the income as noted above.  Your total income may end up being the same either way- but that is up for your own experimenting.  With a rental company you are paying for the convenience and freedom of not dealing with the stresses or renting your condo yourself.

 

Another thing to keep in mind:

In the state of Alabama you will also need a business license in the city your condo is located in.  You can find more on that here: Orange Beach and Here: Gulf Shores.

 

In my next post, I will cover the top 5 income producing one bedroom condos in Gulf Shores and Orange Beach – and the number one condo pulls in $36-48k annually!