Home Buying in Ocean City>Question Details

kimmathteach…, Home Buyer in Philadelphia, PA

I am looking to invest in property either in the Poconos or the Jersey Shore (Ocean City, etc.) Which area would offer better rental income?

Asked by kimmathteacher, Philadelphia, PA Sat Aug 25, 2012

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I have a great cash flow rental I am looking to sell, need to build an addition onto my primary residence so I am looking to cash out. I also have 2 other wholesale deals I am looking to sell in Tobyhanna, both cash flow rentals. Contact Paul (267) 481-0937
0 votes Thank Flag Link Sun Jul 10, 2016
Ocean City is a Shore Thing.

Seas the Day!

http://WWW.Kenfowser.com
0 votes Thank Flag Link Thu Sep 6, 2012
I have a unit for sale steps to the Ocean City B walk at the Ocean Seven. It is an efficiency with two beds, flatscreen, and wi-fi. It generates 17,000 to 20000 in rental income per season.

I am selling it for 145,000. A great option to own your own peice of the shore for personal use or rental income!

Call Tom at 609-705-4109
0 votes Thank Flag Link Tue Aug 28, 2012
I don't know how the rental income works in the Poconos.

I prefer the Ocean to the snow, but it's a matter of preference. Summer season can rent up to twelve weeks in season anywhere from $1,000 - $6,000 per week depending on the type of property - i.e. size, location, type, etc. for Ocean City, NJ.

I would compare the length of the "In Season" for both the Shore and the Poconos and consider the weekly rates for each.
0 votes Thank Flag Link Mon Aug 27, 2012
It depends on your interests and how often you want to rent or use your property for yourself.

While the jersey shore values in the long run will hold, the poconos may offer a 2nd season both summer and winter depending on where you are located.

Please call me to discuss further I can help you with the jersey shore and I have realtors in the Poconos that I work with.

make it a great day!

Andrea Kenney
RE/MAX at the Shore
The Ferzoco Group
(609) 408-3980 cell
akenney@remax.net
0 votes Thank Flag Link Mon Aug 27, 2012
I can't speak for the Poconos rental market. But, I am the rental manager of our Spring Lake office. So I know our rental market well in the Southern Monmouth, Northern Ocean County area.
Here is my advice: what area do you like better? How much can you afford to spend? What type of return are you looking for? Have you been a landlord and know landlord/tenant law?
I would be happy to discuss these issues with you. I am not only a Realtor, but I own investment properties in NJ and FL.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Sun Aug 26, 2012
The challenge is finding the right property in either location. The average Ocean City 3BR/2BA condo costs about $500,000 and has rental potential of about $30,000 if you are lucky enough to find the one with the best location, amenities, decor, and tenant stream, including winter rentals. You then have to pay for rental commissions, weekly cleaning in summer, utilities, insurance and ongoing maintenance and improvements. Depending on your income level and degree of financing, this can provide a small positive return each year or become the black hole of debt. For example, at 50% loan to value (LTV) and a high tax bracket, the above example provides after tax cash flow of about $1,500 the first year. At 80% LTV, it costs about $5,000 a year after taxes to own it, provided that you maintain the rental stream. I don't know what the cash flow looks like on the best rentals in the Poconos, but you should have that information too before you reach a conclusion. If you are investing strictly cash, the Ocean City example provides about $12,500 in after-tax positive cash flow on your $500,000, or about 2.4%. And you still have a shore house to enjoy, too! I would suggest starting with asking yourself about how you would manage the property, whether or not you would use it yourself, and why you would want either location. Figure out how much you want to spend, how much you want to borrow, and work with a qualified agent in the location of your choice to find the best property for your needs.

If you want to take a harder look at the Ocean City market, please contact me directly.

Joan Farrell
Monihan Realty Inc.
Ocean City NJ
joan@monihan.com
http://www.joanfarrell.com
0 votes Thank Flag Link Sun Aug 26, 2012
I suggest that you visit a Beach on any summer day. Count the beach umbrellas and sun bathers. Then go to the Poconos and find a lake and do the same. Which one has the greater summer income rental opportunities? The mountains can also offer some income in the winter from skiers (IF there is enough snow) but you can't beat the summers at the shore! I vote for the shire property!
If you'd like help finding a good income property at the Shore, I'd be happy to help you!
Joanne Bernardini
Coldwell Banker Casa Bella Realtors
609 947 2451
0 votes Thank Flag Link Sun Aug 26, 2012
Jersey Shore without a doubt. Jersey shore has limited land. When economy comes back rentals and prices will double and triple again.
0 votes Thank Flag Link Sun Aug 26, 2012
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