Is a condo a good investment in Miramar Beach Florida

So, you're thinking about investing in a condo, and you're considering investing in the Miramar and Sandestin areas down on the beautiful Emerald Coast. And you're wondering, is this even a good investment? Well, in this video, we're going to go over the different types of condos that we have here and what constitutes as a good or a bad investment for you.

So, let's talk about investing into condos, and specifically, we're going to be talking about condos in the Miramar Beach and Sandestin area, kind of encompassing it into one. Alright, when you're coming here on vacation to the Destin area, you think mainly of Destin like the Harborwalk and the Destin Commons and all the different areas, Henderson Beach. I mean I could go on and on. But one thing that we do sometimes forget, is its neighbor just to the east at Miramar Beach. Now, Miramar starts to go through when you're driving along, and well right now, it's plenty of constructions since it's 2021. It's been going on, which seems like forever. But as you continue to go down this, you're going to see these really ritzy white just, just really updated modern looking homes, condos and complexes. And, as you venture this way and before it turns into woods again, and we head down to the scenic highway 30A, which is where all the ritzy things are at. Well, you went through Miramar Beach. And, Miramar. Beach has that nice area that you can live in, still get that same sort of feel without the price of being down our 30A area, seaside, Grayton Beach, all those different ones. So, you have proximity without paying that premium of a price. Now, when we think about condos, we typically think about beachfront gulf view condos. But that's not the only thing that's available here in this area.

So, when we look at the condos, we look at two different aspects of investing. We look at either the long-term or the short-term rentals. And, which one's going to be more profitable to you? It's going to depend on what you want to use for your portfolio. Some examples of things that you want to consider are going to be management fees, the HOA fees, which can start to get pretty pricey, vacancy rates, the upkeep that you need for it, so that's maintenance and repairs, your return on investment, your cap rates, all sorts of things that you want to pay attention to.

LONG TERM

So, for a long-term rental, what are the things that you might be looking for? At least it's a little bit more simple. You're just looking at Cash Flow, a Monthly Mortgage, and Equity Overtime. Now, those are the simple ways to invest into real estate out here. Now,  as we look into other condos, we're also looking at short-term rentals and we're also looking for Equity Overtime. But, we're trying to cash for a little bit more. And, sometimes you can. But I want to be honest with you, if you haven't seen our videos about investing in a condo in the area, I'd like you to check that out as well. So, you get a better breakdown of what the math looks like. But, when I talk to investors that want to go into this area, I mean one of three different type of investors. One is somebody that just wants to buy a second home. They don't care, they're more of a long-term and it's just for them. So, they're not renting it out whatsoever. So, they're just after equity and their own little beach escape. Number two is somebody that wants to stay there for a little while and then rent it out the rest of the time to offset the cost, or maybe pay for itself, or pay for more. And then the third one is somebody that's just an investor, doesn't care where it is, doesn't care what it looks like, as long as it cash flows. Most people moving here is well, you probably guessed it. Number two, they want to have this wonderful place that they could take a break with and then get some money and offset the cost. I'll be honest with you, most people, because the demand for the condos out here aren't finding these at a discount rate. What that really means is that you're going to pay top of the market for this condo to have it. And what you'll do is get the short-term rentals to offset the cost. But honestly, most of the people that are investing in this area are still digging into their pocket per year anywhere between $2,000 - $4,000. So, given the price point, that may not seem that bad, but you're still paying a little bit out of pocket per year for the condo, but the rest is being offset by the renters that you're having into it. So, it's still nice, still helps you build that Equity Overtime. But, as you can see getting a short-term rental with beach view, doesn't always have this High ROI or Return On Investment or really none at all. Typically, you're going to see that during the summer months are going to be the most desirable time. You know our Springtime through just about the fall is, you're going to almost see, what I would consider a bell curve of where most of your rent, most your income comes in. Now, most people want to vacation during the good times here, and that's why it takes a hit. That's why it doesn't quite pay for itself. Now, if you are going to come down here and enjoy the winter with us, January, February, March, you know, before the Spring Breakers start coming in, and you're fine with that, then, yeah, it might actually pay for itself or you might actually cash flow with it. But just keep you up-to-date and give you an honest feedback, that's what you can anticipate when investing in a condo in Miramar.

What other things do is, what's your best cap rate in Miramar Beach? If you're concerned about that, if you're not if you don't know what a cap rate is, it's your capitalization rate. That's where you take your total value, and you divide it by the operational income or NLI, which gives you your rate, which is going for. Most of the time people are after cap rates, I typically see people looking for anywhere between 8%, maybe 10% is what they tell me they're looking for. And, we'll estimate all that as we put different things together to go, hey, I found this at this cap rate. And that's typically our version 3 that are just looking for the good investment for them.

PRICES HERE 2021

Now, let's talk about prices here in 2021, which you can get for a condo here in Miramar Beach and Sandestin. If you're not looking for a waterfront you can get it as low as. So, these are the low numbers as low as $125,000. If you're looking for water view, any water view, the water view is going to be around $140,000. If you want just that Gulf View, you can get gulf view somewhere around $235,000. And if you want gulf-front, it's not that many. But if you're looking for gulf front condos, they start at a low of $607,000. Now, the median is going to be around $460,000 for Gulf View. That's a high all the way up to $3,000,000. No surprise there, and a low of $154,000. So, some of these may not be gulf-front, but it still has views of the gulf. So, just kind of like, as you get the different elevations, the different floors, and the condo units. Now, we have a Gulf View, which also puts that price up a little bit higher.

Now, I want to talk about not just the Miramar Beach area, I want to talk about Sandestin. Now, Sandestin has all sorts of different things that are in there. You do not just have condos. It's also split. So, you have the beachside or The Gulf side and then you've got the Baytown, Baytown Wharf area. And, they've got all sorts of different investments in there. You do have condos, and condo-hotels, you have single-family homes, and you have attached units all throughout there. And if you haven't been to the Sandestin Resort area, it is its own little community in there. It's got plenty of places for boats, it's got sunset cruises that even us locals go out and check out. You've got the Baytown Wharf area, where they got some restaurants and bars and throw a whole bunch of events out there. We were just out at tacos and tequila, which was pretty great just a couple months ago. But, they throw these things all the time, they got fireworks and what have you. And, this whole community is a golf cart community, where you can even just take your golf cart go across Highway 98, you can get a light, and then head over to the beachside. So, you have access to all these things. Because of that, it really does drive the rental price up. So, no matter what the Rate of your Investments can be pretty darn close regardless of the price point that you get. Because you're going to get a little bit more of the affluent crowd. Somebody that desires that resort feeling to have that Golf Course right there, which is still a pretty good golf course, I'm terrible at golf, but it's still fun. That's right there in Baytown as well as our Sandestin. And, that's just one of those things too. If you want some more specifics on that area, heck, if you want us to create a video about it, just Sandestin alone. Leave it here in the comments below. I'd be happy to go out there, do a little video blog, and it just gives me an excuse to get out there too.

So, that's all that I have for you for “Is a condo a good investment in Miramar Beach” and what you need to know about that. If you have any questions about anything that we mentioned here, please feel free to call/text us at 850.320.7757 or email us at Admin@WhittemoreGroupRE.com