go on vrbo.com and look at rents for HH. you can also look at the calendars to get a good idea on your expected occupancy level for different rents. Also, check craigs list for current rental listings and then call the land lords and ask them about the house and their occupancy for different months. Finally, list the house for rent and see what kind of interest you get before you purchase the house. Before you buy a million dollar house, you should be spending some time and money to determine if your business plan makes financial sense. There are plenty of vacation properties around the world that yield positive cash flow after expenses. I would not purchase an investment property above the trend lines established prior to 2002, ie price, price/rent, etc. In my experience, you make money when you buy the house, get a great price. Do your own research!
Everyone is under the impression that they can cover their expenses by renting their property. Good rule of thumb...if you can cover everything but your mortgage, you are doing good. If you can make a little extra, you are doing great. The Hilton Head Island market is flooded with rentals, re-sales and foreclosures. Property owners who have rented for years are having to lower their expectations a little, but Hilton Head Island rentals will always be a good long term (10 year) investment. Please don't think you can buy something today and flip it 2-5 years from now. Also Belfair and Colleton River Plantation are not on the Island, they are just off the island. Sea Pines, the very first successful Hilton Head Island development by Fraiser/Reed and team is on the island. There are other developments off the island by a few miles that we feel are excellent investment/secondary residential developments with strong rental potential. Would enjoy telling you about them.
The Schaffer Realty Group
Marian Schaffer (Please email firstname.lastname@example.org)