Jcollins, Home Buyer in Gulf Shores, AL

Thinking about jumping into beach house rental ownership in Gulf Shores. Do most owners rent enough to cover a mortgage?

Asked by Jcollins, Gulf Shores, AL Fri May 27, 2011

I just spent a wonderful week in Gulf Shores and the beach house ownership bug has bitten me. I have enough for a downpayment but can't cover a second house payment without renting. Are beach house rentals in Gulf Shores a good business to be in? My dream would be to have a place that my family could spend a couple of weeks a year in, would make me a little money, and be something to leave to my kids and grandkids some day.

Help the community by answering this question:


Teresa King and Cristy Benefield’s answer
As a local beach agent, I agree with the first response and would never advise someone to approach a purchase unless you can cover the costs independent of rental income.

Unless you have a history in the rental business, most lenders today are going to require a buyer to have the ability to pay for a property without rental income from that property.

As a second approach, have you considered qualifying for a property purchase with a family member or friend to split the expenses of ownership? It's just an idea, as many owners are doing this until they see if the beach rental market is for them. In time, you can "trade up" to a place of your own, but this could get you in the door until then.

If I can assist you further, please call on me.

Teresa King
RE/MAX of Gulf Shores
0 votes Thank Flag Link Sun May 29, 2011
I've done it for 6 years now. Had a condo across Beach Blvd at Lani Kai. We put 5% down ( much different times back then), and between the rental income & tax advantages, it almost paid for itself, with us using it 4-5 times a year ourselves. Sold it & bought on the beach at Edgewater West, put 25% down, & it more than has paid for itself.
0 votes Thank Flag Link Thu Jan 24, 2013
Don't EVER buy a 2nd home that you can't afford to pay monthly expenses on your own. Rent money is just icing on the cake. If you depend on rent, then you'll join the other condo owners who have foreclosed during the past 2 years down here.
0 votes Thank Flag Link Sat May 28, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer