Tell me about owning a condo at the beach

[Anonymous]

This would sort of be my dream once my kid goes to college (when I could afford it the least). Get a condo and drive down a lot and work from the beach condo.

I had no idea about the mortgages and rentals. Sounds like it would be tough to buy and sell.

[Anonymous]

Anonymous wrote:This would sort of be my dream once my kid goes to college (when I could afford it the least). Get a condo and drive down a lot and work from the beach condo.

I had no idea about the mortgages and rentals. Sounds like it would be tough to buy and sell.

A lot of people had the same idea during COVID. Prices skyrocketed. My parent's place doubled in value after July 2020.

[Anonymous]

We bought a Condo in Rehoboth in 2019. It was $315k and now they’re going for $450k and up. We go a lot in the off season, probably once a month and a week in the summer before school starts. The rest of the time it’s avail for rent. The summer weeks go for over 2k a week and those rentals cover the mortgage/condo fees/bills year round.
It has a nice pool and easy access to the bike trail, can ride bikes into downtown Rehoboth in 10 mins.
The only downside for us is getting there if something breaks. Our cleaner told us on Sat that the garbage disposal is cracked and leaking under the sink. So now we need to coordinate access with the people renting to get a plumber in there. Other times it’s something we can fix, but have to get there. On average I’d say this kind of crisis happens once every 2 years. It’s not frequent so still worth it for us.

[Anonymous]

Anonymous wrote:We bought a Condo in Rehoboth in 2019. It was $315k and now they’re going for $450k and up. We go a lot in the off season, probably once a month and a week in the summer before school starts. The rest of the time it’s avail for rent. The summer weeks go for over 2k a week and those rentals cover the mortgage/condo fees/bills year round.
It has a nice pool and easy access to the bike trail, can ride bikes into downtown Rehoboth in 10 mins.
The only downside for us is getting there if something breaks. Our cleaner told us on Sat that the garbage disposal is cracked and leaking under the sink. So now we need to coordinate access with the people renting to get a plumber in there. Other times it’s something we can fix, but have to get there. On average I’d say this kind of crisis happens once every 2 years. It’s not frequent so still worth it for us.

Did you pay cash? If not, any issues getting a mortgage? Who manages your rentals? If your cleaners contacted you about the maintenance issue, sounds like perhaps you manage yourself? Thanks for this - it’s helpful!

[Anonymous]

My ILs bought a condo in Bayside, Selbyville, Delaware when the community was just being developed around 2008.

They have never rented. They are about a 3.5 hour’s drive in Maryland.

Pros: no stairs, elevator access and a condo association that deals with trash, cleaning of common areas, outside facility maintenance.
Mostly maintenance free for them. They have it stocked with food, linens, clothes so they can arrive with very little. Nice and convenient.


Cons: only my FIL can drive now and so they don’t go as often. Managing expectations: my ILs envisioned their condo being the gathering place for family reunion type vacations and gatherings with them. It’s too small for us all to join.

They also never bought into the swim clubs, fitness center, tennis, golf. Always claimed it was too expensive. Very little to do there without getting in the car and heading out for fun. Sometimes there are concerts and the neighborhood is walkable.

My advice is that if you do buy - think about how YOU want to enjoy it and how often you’ll go.

[Anonymous]

Anonymous wrote:We bought a Condo in Rehoboth in 2019. It was $315k and now they’re going for $450k and up. We go a lot in the off season, probably once a month and a week in the summer before school starts. The rest of the time it’s avail for rent. The summer weeks go for over 2k a week and those rentals cover the mortgage/condo fees/bills year round.
It has a nice pool and easy access to the bike trail, can ride bikes into downtown Rehoboth in 10 mins.
The only downside for us is getting there if something breaks. Our cleaner told us on Sat that the garbage disposal is cracked and leaking under the sink. So now we need to coordinate access with the people renting to get a plumber in there. Other times it’s something we can fix, but have to get there. On average I’d say this kind of crisis happens once every 2 years. It’s not frequent so still worth it for us.

Do you when it rented all summer? $2k a week is very low for Rehoboth. Is it along Rt 1?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Keep in mind that appliances age faster at the beach bc of the moisture.

Everything ages faster at the beach.

The constant replacement of everything would make renting out my place not worth it. If you’re thinking of a second home, make it one you can afford without needing to rent out.

Are mortgage rates different for second homes? Does anyone know off hand?

Yes, higher.

[Anonymous]

Anonymous wrote:Condo fees make it prohibitive. Also, unless paying in cash it is hard to get a mortgage on a condo that has a lot of rentals. And if paying cash it can be difficult at resale. Buy a house.

Many condos are no fee condos.
Two houses connected on same lot because of extremely expensive land near the ocean.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought a Condo in Rehoboth in 2019. It was $315k and now they’re going for $450k and up. We go a lot in the off season, probably once a month and a week in the summer before school starts. The rest of the time it’s avail for rent. The summer weeks go for over 2k a week and those rentals cover the mortgage/condo fees/bills year round.
It has a nice pool and easy access to the bike trail, can ride bikes into downtown Rehoboth in 10 mins.
The only downside for us is getting there if something breaks. Our cleaner told us on Sat that the garbage disposal is cracked and leaking under the sink. So now we need to coordinate access with the people renting to get a plumber in there. Other times it’s something we can fix, but have to get there. On average I’d say this kind of crisis happens once every 2 years. It’s not frequent so still worth it for us.

Did you pay cash? If not, any issues getting a mortgage? Who manages your rentals? If your cleaners contacted you about the maintenance issue, sounds like perhaps you manage yourself? Thanks for this - it’s helpful!

Didn’t pay cash but did put 20% down. When we met we both owned homes. I sold mine, she rented her last out initially but after 2 sets of good renters decided to sell and rolled the proceeds from that into the 2nd home.
Spouse manages it thru vrbo. No issue with mortgage because we had 20% down. We are not high earners ( HHI 190k) but we have good credit and stable jobs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought a Condo in Rehoboth in 2019. It was $315k and now they’re going for $450k and up. We go a lot in the off season, probably once a month and a week in the summer before school starts. The rest of the time it’s avail for rent. The summer weeks go for over 2k a week and those rentals cover the mortgage/condo fees/bills year round.
It has a nice pool and easy access to the bike trail, can ride bikes into downtown Rehoboth in 10 mins.
The only downside for us is getting there if something breaks. Our cleaner told us on Sat that the garbage disposal is cracked and leaking under the sink. So now we need to coordinate access with the people renting to get a plumber in there. Other times it’s something we can fix, but have to get there. On average I’d say this kind of crisis happens once every 2 years. It’s not frequent so still worth it for us.

Do you when it rented all summer? $2k a week is very low for Rehoboth. Is it along Rt 1?

I don’t manage it, spouse does. I know it’s just over 2k per week but not sure exact amount. It’s in The Tides, opposite fresh market just before the Dewey/Rehoboth split.

[Anonymous]

We also bought a Covid Condo in OC. It was nice to Zoom school from there. It is hard to get there as often as we want. We have teenagers and they don't want to go as they have a lot going on at home. My DH is fine going down for a day or two, but I hate the drive. And during the summer it is crazy busy. I wish we could be there more, but life gets in the way.

We paid cash, so no info on mortgages. Condo fee keeps increasing. I want to sell it, but will probably hang on to it for awhile.

[Anonymous]

Anonymous wrote:We also bought a Covid Condo in OC. It was nice to Zoom school from there. It is hard to get there as often as we want. We have teenagers and they don't want to go as they have a lot going on at home. My DH is fine going down for a day or two, but I hate the drive. And during the summer it is crazy busy. I wish we could be there more, but life gets in the way.

We paid cash, so no info on mortgages. Condo fee keeps increasing. I want to sell it, but will probably hang on to it for awhile.

Sell it to me

[Anonymous]

I own a beach condo the rental thing is only Fannie and Freddie mortgages issue.

That said most banks and credit unions give mortgages my building but since not selling to Fannie or Freddie most want 25 percent down.

I say 50 percent of sales are cash anyhow as only sell for $400k to $600k.

One risk not discussed with be short term rental risk. Nearly all of NY banned rentals under 30 days. There is no guarantee weekly rentals will be allowed forever in where you buy

[Anonymous]

People used to have beach shacks-simple cottages that didn’t need insurance and used little power/water and were for vacations only. This is really what should only be allowed built along beaches. It’s a terrible place to build and maintain McMansions and condos. Not to mention polluting the beaches. It’s a shame.

[Anonymous]

Anonymous wrote:I own a beach condo the rental thing is only Fannie and Freddie mortgages issue.

That said most banks and credit unions give mortgages my building but since not selling to Fannie or Freddie most want 25 percent down.

I say 50 percent of sales are cash anyhow as only sell for $400k to $600k.

One risk not discussed with be short term rental risk. Nearly all of NY banned rentals under 30 days. There is no guarantee weekly rentals will be allowed forever in where you buy

Correct. In Virginia Beach, most STRs are only allowed for grandfathered properties (demonstrated STR usage per tac filings prior to 2019)and even then the registration process has a ton of hoops to jump through.
Architectural and structural inspections by a licensed engineering firm.
Safety inspections.
Special taxes.
Ugly signs that have to be posted on the STR property exterior wall.
1 parking space per each bedroom requirement.
Yearly permit fees.
Etc., etc.