OBX house not selling
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Anonymous
Reality is maybe a 6 hour plus drive each way from the DMV with a Mixing Bowl passage. I'd rather the Bay Bridge. The house is so large it's for multiple family units or HS/college/young adults or ven a bachelor party week at the beach. Imagine the crowds renting it and the rough usage. |
Anonymous
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Anonymous
OP have you ever owned a rental property before? We own in OBX. I don’t personally like Corolla, so would never buy there. This house is clearly overpriced. These big houses get used HARD by renters. If you are not an experienced owner, I would strongly suggest starting with a smaller home and make sure you like it. There are ups and downs in the rental market. OBX has returned to pre Covid rental levels. At the same time, costs especially insurance, have significantly increased. This has left some owners who bought thinking rentals would stay at 2021-2023 levels scrambling and needing to get out. Our average cost of ownership on a house half the size of that one is over $50k a year with a $500k mortgage at 3% interest. We put a lot of cash down and kept the mortgage under a jumbo at a time when interest rates were much lower. Whatever you do, don’t overextend yourself financially. Make sure you can pay for the house without renting. Rental income definitely helps but if you are relying on it to pay the mortgage, you will be stressed out all the time and it might not happen. Maintenance on beach houses is much more than a regular house in the DMV. The salt air is much harder on things like hvac units, windows, roofs decks and siding. You replace them almost twice as frequently. It also seems like there is always some issue with either the pool or the hot tub. You would think things would be cheaper than the DMV but they aren’t. There is nowhere for workers to live that is affordable, so prices reflect their costs. Everyone needs things fixed at the same times so it also drives prices up - basic supply and demand. We love our house and have no regrets, but we did a lot of research and really knew the area before we purchased. HTH. |
Anonymous
| Yes, dated rental looking property and vastly overpriced |
Anonymous
| It sold for 300K less in last 2022. Homes did not appreciate that much since late 2022 and flood insurance and home insurance had gone way up last three years. |
Anonymous
It's pretty obvious from the replies that OP wants to hear it's a great investment idea and they should go for it. So go for it OP. Waste your money on a house that's too big and too expensive. Have renters destroy it. Then come back and update us on how full of regret you are 
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Anonymous
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BTW I own in a condo complex near the beach. Around 2021 all the investors stopped buying. Prices rose a lot making the profitability less and insurance rates were rising.
Plus with a longer term muni bond paying up to 5 percent if I want to make income I could buy a muni bond for two million and collect one million a year tax free interest. And if I finance it going to cost me 7 percent interest on a second home rental property. Even if I put down $500K a 1.5 millon loan will run me almost 10K a month!! And at beach, HVAC, Roof, paint, gutters the crap goes quick. My condo they put on a 50 year roof in 2010 top of line. It needs replacing soon. After 15 years the roof is showing age. It might make it to 20. Everything goes quicker. The condo up the block my condo that actually has a pool, and amenities common charges went from $750 a year in 2020 to $1,500 a year in 2025 and is well run. Insurance and replacement costs by beach are through the roof. And not like you can pass that all on to renters. I would for fun get a quote on that property for insurance and bet you will choke. They add in realtors fees and building manager fees or aribnb fees and cleaning fees it is not an easy business. In fact my little beach condo by beach all the investors now rent year round. It was just too much work managing tenants in and out all day. Complaints, thing breaking. One investor is an electrician and he went to full time as a headache not worth it to hime weekly rentals. |
Anonymous
I'm the PP you're quoting. We actually own a second home in a location that has high demand in summer (lake and hiking) and winter (skiing). We don't rent it out, but saw the records for the previous owner who did. Rents were lower in the shoulder seasons of spring and fall, but fairly steady. Peak rates did not fluctuate much during summer and winter but were pretty steady. I imagine they did ok with the rental. But even in a more high end place, it takes a toll on the property. The house had a much smaller max usage per the rental company, certainly not stacking people into it the way so many of the OBX properties do. We renovated, got rid of the previous furnishings, and took it off the rental market. No thanks, too annoying, house is paid for, and we don't need the stress. |
Anonymous
Can so many people really not read a map? It's in between two public beach access points, both clearly marked on the map in the listing. |
Anonymous
On top of this try finding reliable contractors when you are 6 hours away is hard. There are so many bad or out right con men posing as contractors in these areas. |
Anonymous
Excatly. Why do so many beach rentals have those gross polyester bedspreads? |