Buying waterfront property for retirement?

[Anonymous]

Anonymous wrote:There is no way you personally can manage the AirBNB from that far away. You'll need a property manager. Expect to make no profit unfortunately.

I do plan to have a property manager, and already know of a one I would consider. Based on what I have seen in comps, we could easily get at the very least $1,000 a night. I haven't explored the rates yet, but, yes, I realize I won't pocket the entire amount. Why would people hire property managers if they can "expect to make no profit"? What is the typical percentage?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sounds like a good idea to me. I'd pull the trigger.

Just make sure you know what the culture in the area is regarding AirBnb. We have a place on the Shenandoah River, and in our little community I'd say it's about 1/2 weekenders and 1/2 folks who live there full time. In the past several years there have been about 5 properties that have become AirBnbs. And there is hatred for them. Rabid hatred. (It is common that the people renting the places out speed on our roads, make too much noise, and are generally disrespectful -- or seen as such by locals anyway.) I would never rent our place out as an Airbnb when we aren't using it for that reason alone. Just something to consider.

Same where we are. And some towns are cracking down on short term rentals. Weekly rentals are less common in the off season than in season so could be a risk of OPs plan.

yup, our beach area just cracked down and one can no longer have rentals shorter than 28 days. and trust me, there are enough Karen's who scour the internet looking at house postings.

This "28 days" was considered a compromise as some wanted to completely ban any air bnb. It still allows seasonal rentals.

[Anonymous]

Anonymous wrote:

Anonymous wrote:There is no way you personally can manage the AirBNB from that far away. You'll need a property manager. Expect to make no profit unfortunately.

I do plan to have a property manager, and already know of a one I would consider. Based on what I have seen in comps, we could easily get at the very least $1,000 a night. I haven't explored the rates yet, but, yes, I realize I won't pocket the entire amount. Why would people hire property managers if they can "expect to make no profit"? What is the typical percentage?

I can only speak for myself - I have a manager because even though the house runs at a loss for the year (property tax, insurance, mortgage, etc.) the $10k I get from rentals helps. I don’t need the $10k, but since we don’t use it for August, I figured why not.

[Anonymous]

Your post comes down to two things -

Should you? Sure, who wouldn’t love an Oceanside property.

Can you? Depends on if you need a rental income to support the house while using it during high season.

[Anonymous]

My dream has always been to live on the water but I can’t justify it anymore with environmental changes. Also I would either buy an investment property that is rented out or a second home we go to frequently and don’t rent. I would not combine the two. I’d rather rent for vacations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sounds like a good idea to me. I'd pull the trigger.

Just make sure you know what the culture in the area is regarding AirBnb. We have a place on the Shenandoah River, and in our little community I'd say it's about 1/2 weekenders and 1/2 folks who live there full time. In the past several years there have been about 5 properties that have become AirBnbs. And there is hatred for them. Rabid hatred. (It is common that the people renting the places out speed on our roads, make too much noise, and are generally disrespectful -- or seen as such by locals anyway.) I would never rent our place out as an Airbnb when we aren't using it for that reason alone. Just something to consider.

Same where we are. And some towns are cracking down on short term rentals. Weekly rentals are less common in the off season than in season so could be a risk of OPs plan.

yup, our beach area just cracked down and one can no longer have rentals shorter than 28 days. and trust me, there are enough Karen's who scour the internet looking at house postings.

This "28 days" was considered a compromise as some wanted to completely ban any air bnb. It still allows seasonal rentals.

Ours has a 1 week minimum so more reasonable, but still rules out weekend rentals, which is what many want in the off season, especially in coastal New England where a lot of shops and restaurants aren’t open all week.

Sounds like where OP is looking (Newport?) is currently flexible so maybe she’s okay, but worth looking into local politics to check if there have been proposals on STR.

[Anonymous]

Anonymous wrote:

Anonymous wrote:There is no way you personally can manage the AirBNB from that far away. You'll need a property manager. Expect to make no profit unfortunately.

I do plan to have a property manager, and already know of a one I would consider. Based on what I have seen in comps, we could easily get at the very least $1,000 a night. I haven't explored the rates yet, but, yes, I realize I won't pocket the entire amount. Why would people hire property managers if they can "expect to make no profit"? What is the typical percentage?

Sounds like you’ve made your decision. If you are paying cash for a house that rents in the off season for $1000+ per night not sure why you are hesitating.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There is no way you personally can manage the AirBNB from that far away. You'll need a property manager. Expect to make no profit unfortunately.

I do plan to have a property manager, and already know of a one I would consider. Based on what I have seen in comps, we could easily get at the very least $1,000 a night. I haven't explored the rates yet, but, yes, I realize I won't pocket the entire amount. Why would people hire property managers if they can "expect to make no profit"? What is the typical percentage?

I can only speak for myself - I have a manager because even though the house runs at a loss for the year (property tax, insurance, mortgage, etc.) the $10k I get from rentals helps. I don’t need the $10k, but since we don’t use it for August, I figured why not.

what percentage do the managers get when the home is long distance/oos?

[Anonymous]

https://www.zillow.com/homedetails/125-Corys-Ln-Portsmouth-RI-02871/2127468380_zpid/

wow!!!
this one sold for 2.8 in 24 now under 1M?
what???

[Anonymous]

Anonymous wrote:Will spending the entire summer there make the home unaffordable in retirement without the rental income?

Hidden costs of coastal seasonal property - seasonal rates for everything goes way up. I know it’s not an exact comparison but our Nantucket landscaping costs for ten 12 weeks is just under $10k (mowing). To get an understanding of the tiny lot we are on - they are in and out in 30 minutes. But the cost is what it is. Fall and spring clean up are separate.

I am confused here. If you live there full-time, wouldn't you just buy a lawnmower and cut your own grass?

Nantucket is also not a great comparison...it's a fairly long ferry ride at all times, while this island in RI is only an island in the most technical sense of the word...it's easily accessible by car from multiple directions.

[Anonymous]

Anonymous wrote:https://www.zillow.com/homedetails/125-Corys-Ln-Portsmouth-RI-02871/2127468380_zpid/

wow!!!
this one sold for 2.8 in 24 now under 1M?
what???

Something is completely nuts with the price history, so not sure you can trust the $2.8MM number.

It says you don't own the ground under the property, so it's sold with a ground lease. You pay $3k/month for the lease, which also gives you membership to the Aquidneck Club.