better investment (cost to rent ratio), Delaware beaches or OBX?

[Anonymous]

looks like you can get a huge furnished house in Corolla for around $950K. Can you clear $80K/year on rentals while still enjoying it yourself for a week or two in the summer and a few weekends here and there in the fall and spring?

[Anonymous]

clearing $80k/year seems high. My cousin owns a town house on the beach in Delaware and he is able to rent it pretty easily between memorial day and labor day for about $3k-4k a week. The rest of the year it's not so easy to rent but he's able to enjoy it then.
The house is worth about $750k.

[Anonymous]

I was looking at a home in Corolla two years ago because the prices had come done significantly. Corolla rentals are really great (hard to find open homes in the summer), but I ended up going against the purchase because I could not get hurricane/flood insurance. I am not sure about insurance in Delaware, but that area certainly seems to get hit less often by hurricanes.

[Anonymous]

Clear $80k-no. You can probably get $80k in rental income on a really nice property that rents well, but with maintenance and management fees you can expect to only take home about half of that.

I've seen some guidance that you can expect to get about 5% of the value of the house in actual income. So that would be a little less than $50k on a $950k house. Less if you're going to use the house for a few of the prime rental weeks.

[Anonymous]

Be sure to figures taxes into the equation. Taxes at the Delaware beaches can be incredibly low.

[Anonymous]

Yes taxes low and rental fees higher than NC. You get more for your $$ in NC but a much longer drive and I think rental mkt is tougher than Rehoboth, for example.

[Anonymous]

Some of those houses in Corolla rent for 10k a week in the summer...