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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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