What to Consider Before Purchasing Investment Property in Destin
Destin is a Wonderful Location for an Investment Property
When you’re not enjoying Destin with your family, you can open your home for renters. Rental homes in Destin are typically full for the entire summer season. It really is possible for your rental income to cover the mortgage costs for your Destin rental property.
If you are looking for a rental property in Destin, one thing to consider is the price to gross rents ratio. The smaller the ratio, the better the income. For example, if you are looking at a Destin condo that is listed at $400,00, and the unit generated $40,000 in gross rents over the past year, the ratio would be 10. The closer you can afford to be to the beach or tourist areas, the greater the demand will be for your rental property.
When calculating potential costs for your investment property, don’t forget to factor in taxes and HOA fees. High HOA fees can seem off-putting at first, but don’t run away until you have seen what they cover. HOA fees cover insurance and maintenance for common areas, so if your potential property is in a development with a pool, walking trails, and tennis courts, you will make back the HOA fee because the property will be desirable to renters. If you are looking to purchase a townhome or condo, HOA fees often include water, sewer, basic cable, and trash removal as well as building and ground maintenance.
Destin has many attractions to ensure your investment property will get plenty of use by beach-loving tourists. Big Kahuna’s Water and Adventure Park has plenty of thrills for the younger generations, while Henderson Beach State Park offers trails through the natural environment for all generations to enjoy together. You and/or your renters can get a taste of natural Florida as you weave your way through the pine and oak trees to see what native wildlife you can spot.
Northwest Florida is not called the Emerald Coast for no reason. The waters are truly magnificent, and they draw flocks of tourists year-round. In addition to the water itself, the city of Destin’s HarborWalk Village is a fun place to be. Your renters might want to find a peaceful spot to enjoy the ocean breezes or take in a brilliant sunset. There are also numerous shops and restaurants along the ¼ mile boardwalk. With restaurants like Cuvee Bistro, owned by celebrity chef Tim Creehan, Emeril Lagasse’s Meril, and The Vue on 30a in Santa Rosa Beach with executive chef Giovanni Filippone from “Hell’s Kitchen”, it’s no wonder celebrities like Sheryl Crow call Destin home.
Celebrities aren’t only spotted in the kitchen. The Mattie Kelly Arts Center on the Niceville campus of Northwest Florida State College brings professional Broadway and art shows to the area. The center also hosts numerous student-run productions throughout the year. The Okaloosa Arts Alliance ensures that Destin appeals to the artistic senses as well as the natural ones by supporting local and aspiring artists with various activities throughout the year.
Once you have made up your mind to buy, and you have your finances in order, get a pre-approval letter for what you can afford from your bank, and then get in touch with The Laurie Hollowell Team. She’ll get you connected with an investment property that will serve you well.