Comments on: Cape San Blas Real Estate Year In Review – 2009 http://capesanblasblog.com/2010/01/01/cape-san-blas-real-estate-year-in-review-2009/ Sherri Dodsworth's Real Estate News and Views For Cape San Blas, Indian Pass and Florida's Forgotten Coast Fri, 16 Mar 2012 15:19:46 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Sherri Dodsworth http://capesanblasblog.com/2010/01/01/cape-san-blas-real-estate-year-in-review-2009/comment-page-1/#comment-17206 Sherri Dodsworth Fri, 01 Jan 2010 21:21:16 +0000 http://capesanblasblog.com/?p=945#comment-17206 I really appreciate your feedback - thanks! I have resources for tracking sales data, but not rentals. I would imagine most property managers could give you input on how values have adapted to the changing market. I do know that in the past two years the new rental consumer is now frequently either booking at the last minute or in many cases showing up unannounced and asking what's available, and all expect to be cut a discount deal of some sort. I've also been told that even during the peak summer months more guests were regularly booking fewer than the customary 7 days. According to the Tourist Development Council, Gulf County had it's greatest month of rentals ever this past July with collected bed taxes reportedly up 42% over last July. Very impressive. Your'e absolutely right - prices are getting back down to where more properties are going to start cash flowing again and it will greatly improve marketability. If an investor is interested in a modest cap rate, say 4 to 5 per cent, there may well be a selection of propeties already at a point to produce that. I really appreciate your feedback – thanks! I have resources for tracking sales data, but not rentals. I would imagine most property managers could give you input on how values have adapted to the changing market. I do know that in the past two years the new rental consumer is now frequently either booking at the last minute or in many cases showing up unannounced and asking what’s available, and all expect to be cut a discount deal of some sort. I’ve also been told that even during the peak summer months more guests were regularly booking fewer than the customary 7 days. According to the Tourist Development Council, Gulf County had it’s greatest month of rentals ever this past July with collected bed taxes reportedly up 42% over last July. Very impressive.

Your’e absolutely right – prices are getting back down to where more properties are going to start cash flowing again and it will greatly improve marketability. If an investor is interested in a modest cap rate, say 4 to 5 per cent, there may well be a selection of propeties already at a point to produce that.

]]> By: Bill http://capesanblasblog.com/2010/01/01/cape-san-blas-real-estate-year-in-review-2009/comment-page-1/#comment-17205 Bill Fri, 01 Jan 2010 19:20:19 +0000 http://capesanblasblog.com/?p=945#comment-17205 This is fantastic info Sherri, thanks for all of your hard work. Do you have any similar numbers for rental receipts in the area over the past several years? Something like the average rental income for a 3 bed/2 bath Gulf view house etc. Not average rent amount, but actual income before expenses. On second thought, that might be too tough to find out? For instance, up the coast in Gulf Shores, AL - I had a 4 bed/3bath gulf view house that booked $30k in 2006, but only $24k in 2009. Higher rents, but had to give away more freebies to stay competitive. But, the purchase price for that house back then was $700k, and likely would only fetch $350k today at best. At some point, the rents will carry the mortgage for us poor folk who can only put down 20% and need a loan, like they did earlier in the decade - and when that happens I would think smart investors would buy like crazy, if they realized the economics. Bill This is fantastic info Sherri, thanks for all of your hard work.

Do you have any similar numbers for rental receipts in the area over the past several years?

Something like the average rental income for a 3 bed/2 bath Gulf view house etc. Not average rent amount, but actual income before expenses.

On second thought, that might be too tough to find out?

For instance, up the coast in Gulf Shores, AL – I had a 4 bed/3bath gulf view house that booked $30k in 2006, but only $24k in 2009. Higher rents, but had to give away more freebies to stay competitive. But, the purchase price for that house back then was $700k, and likely would only fetch $350k today at best.

At some point, the rents will carry the mortgage for us poor folk who can only put down 20% and need a loan, like they did earlier in the decade – and when that happens I would think smart investors would buy like crazy, if they realized the economics.

Bill

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