How to Buy an Ocean Front Vacation Rental in North Carolina

By
Real Estate Agent with (owner) JustNewListings.com Realty, Inc.

How to Guide on Buying Vacation Rentals Beach Properties North Carolina

 

hi i'm jay seville the owner of

wilmington-real-estate.com and

the greater wilmington north carolina

area and justnewlistings.com in northern

virginia and washington DC Metro today's

topic is how to buy an oceanfront

vacation rental condo or house in NorthCarolina ocean front this is a passionate endeavor

of mine I would say now 95% of my

business is vacation rentals for

out-of-town investors and today I'm

going to give you a concise tutorial on

how to do this effectively and what the

basics are for you to keep in mind and

after about 8 minutes or so you'll be a

semi expert we're going to cover several

things you remember on the definition -

examples of vacation rentals good

scenarios an oceanfront condo in NorthCarolina vacation rental an oceanfront house and a

second row beach property and show you

how the numbers work differently for all

of them etc we're going to go over the

 

 

common fees expenses and profit for each

of them then we're going to talk about

two kinds of financing the market as a

whole and the realtor side of it so with

that let's get started first of all what

is it a patient round vacation rental is

a property that is owned by usually an

out-of-town investor and it is a classic

icon of American air what do millions of

people do in the summers they rent a

property on the beach either a condo

townhouse or duplex whatever and they'll

do it just for their family or a couple

families or relatives will team up and

rent a unit or house with a couple of

Ocean Front Vacation Rentals

extra rooms and thereby save money so

two families get together they rent a

house for $4,000

and they have a weekend beach together

and then they do this every year for

many years building up incredible family

memories etc that is the classic of Mary

vacation round scenario and here's the

three scenarios were going to cover

number one our oceanfront condos for

sale in North Carolina

 

 

Wrightsville Beach Carolina Beach etc an

example of one is a condo tell this one

is called Atlantic Towers and this is in

Carolina Beach condos for sale the condo

tel is where it's run like a hotel but

technically it's a condominium each unit

is owned by an owner people call in to

the front desk and make rentals so how

do the numbers work at this these are

closing right now for about one hundred

eighty thousand dollars a few years ago

they were closing at 155 and you call

them to the front desk and this is what

you get let me click on one it's a

one-bedroom property with some bunk beds

built into the hallway and officially I

think that they say that it sleeps six

usually because there's a pullout so

fordable type of oceanfront condos I'm

trying to get a picture of that a bunk

bed for you there we go

now these cost 190 and they gross let's

see there you go built-in bunk bed not

very good photos big gross as you can

see from the expense sheet here right

here they gross 21 thousand as an

example the expenses would be forty four

hundred that would be maid service

repairs you you know for example could

be utilities and then let's and then the

management fee and Atlantic Towers is

tied in to the HOA fee so it's very low

just three thousand dollars so they

gross 20 they paid out about seventy

five hundred and the owner received

thirteen thousand dollars of pure profit

so if you set up your mortgage to cost

less than a thousand a month then this

would be paying for itself in

appreciating an actress or

years it will be paid off and your

$1,000 or what would it end up

eventually being like $1500 a month of

income would be going to you not to

mention the value of your property which

might be worth 250 now

so that's Atlantic Towers this one I

just went under contract on this

oceanfront home in Holden Beach and it's

it's really styling inside it's listed

for 849 but it's got a bunch of bedrooms

and it's more high-end inside good

furniture painted well quality flooring

updated kitchen but the kicker is is

that it has a pool you see here this

grosses $100,000

and homes with pools typically generate

20% more rental income so they're there

that slang is called rental machine this

is definitely a rental machine so I'm

gonna get to the profit ratios and stuff

on this later so that's an example of a

vacation rental home that's an

oceanfront that one happens to be a

Holden huge oceanfront now here is a

second row home my buyer bought this one

at 2924 beach driving Oak Island we got

it for 365 it's a four-bedroom two-bath

here what here was the front of it by

the way and I had this kitchen picture

set up on purpose because I want to show

you so she quickly a month later had the

kitchen looking like this instead as you

can see that's a lot nicer than this so

a little painting can completely

transform her property look at this the

paneling it's all nasty and ugly she

painted it this to match the walls and

the new color schemes and as you can see

from her from her calendar here on the

bookings already June and July are

completely booked

August is partially booked it'll get

booked out all the way she already got a

rats for January February March so this

property she got for 365 it's it's

probably got a girl's 40 grand you know

so it's fantastic and I'm really happy

for her things are going well pretty

much I'm an expert in vacation rentals

in North Carolina and I can help you

find the right property that's going to

be effective for you now another thing

to keep in mind is the market we're in

an appreciating market things have been

appreciating since 2012 actually

graduating which is healthy we no longer

have interest only realm loans no

documentation or no doc loans so there's

no frenzy it's just consistent

appreciation

however Oak Island and it's pretty

close

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Topic:
Real Estate General Information
Location:
North Carolina
Tags:
carolina beach real estate
oak island real estate
topsail beach homes
oak island oceanfront
oceanfront north carolina
vacation rentals north carolina
beach homes north carolina

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Rainmaker
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Jay Seville

Northern Virginia & SE NC Beaches
Email me a question about area or a listing now
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