Rental Basics in 33957>Question Details

Dale, Other/Just Looking in Herndon, VA

My wife and I are considering a condo in Sanibel in the 2BR/2BA range, renting it most of the time while keeping a couple of weeks for our use.

Asked by Dale, Herndon, VA Tue Nov 24, 2009

What are the most important factors we should keep in mind as we look at properties in this area? As a rule of thumb, how much do Sanibel condos generate in rental income in a year as a percent of the property's price? If we can't afford a condo with a "gulf view," what's the next best thing? What do we absolutely, at all costs, want to avoid?

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The best condos for rental income have a good Gulf view and are weekly rental units. There are a few complexes that allow daily or 3 day rentals, as well, which is also a plus. Most homes on Sanibel are 28 minimum rentals, although Captiva homes are weekly rentals.
1 vote Thank Flag Link Tue Nov 6, 2012
Sanibel condos can have a 28 day minimum rental restrictions the same as single family homes. It depends when the complex was built and if it’s in a resort housing zone or not. Condo’s can generate anywhere from 20+ thousand up to 80+ depending on the unit so I would need more information to give you a precise and detailed answer on rental income. If you are buying the unit as an investment talk with your accountant so you understand the best way to manage taxes and use. If you can’t afford Gulf front most complexes have partial Gulf view or Near Beach units which sell for less. What do you absolutely, at all costs, want to avoid? Missing a chance to live or vacation on the Islands!
1 vote Thank Flag Link Wed Dec 30, 2009
Hi Dale:
Sanibel and Captiva have condominiums available that rent by the week or nightly. There are several important questions: Price range, are you financing, how often do you want to use the condo, do you want a sunset? These answers will help guide you to the right property for you. I have been helping people make there island dreams come true for over 26 years. I have an office on Sanibel, Captiva and at Sundial Resort. Contact me with any questions you may have.

Fred Newman, Realtor, ePro, SCIS
239-826-2704
Fredandvicki.com
Royal Shell Real Estate
0 votes Thank Flag Link Tue Jul 29, 2014
You want to avoid a property without an elevator to the floor on which your unit is located. The view is a huge factor in the price of the condo. West views are preferred for the sunsets. The property should have both pool and tennis. The gulf front ones rent much more often than the ones with a partial view or a view from the side. So you get what you pay for. Most condos will need a refresh of the kitchen cabinets. High season is just ending this month (April). But some complexes rent well in the summer too.
0 votes Thank Flag Link Mon Apr 14, 2014
Look for one which has weekly rentals. One which allows only two week rentals will be hard to rent out. Point Santo on West Gulf is the best complex for year round income.
Flag Mon Apr 14, 2014
4 words ... Sundial Beach Resort & Spa ... Complete remodel with new owners. We are still negotiating some good deals but they're tightening up. We're seeing 2000 - 2002 prices with lots of activity - 9 Condos, in the last 2 months, have either closed or under contract.

Here are all the current active listings, half are rediculously hi and half are reasonable.
http://www.sancapmls.com/san/maildoc/stom_1364491775-Mar-28-…

Here is the e-Brochure for the remodel:
http://issuu.com/vekberg/docs/sundial_renovation_e-brochure?…
0 votes Thank Flag Link Thu Mar 28, 2013
With regards to the Sanibel Bridge tolls, most Sanibel residents and 2nd homeowners buy an annual unlimited trips pass for $400 or a semi-annual unlimited trips pass for $300. Another option is the discount program where you pay $67 annually and $2.00 per trip. Here are details about the tolls from the LeeWay website: https://www.leewayinfo.com/LWinfo_tolls.html

Good luck with your search!
0 votes Thank Flag Link Thu Dec 3, 2009
Dale, I can't tell you a darned thing about the Sanibel market, but I can tell you to make a call to your CPA or accountant first. This is an investment property, and you want to know if you'll qualify to be able to depreciate it, and how to handle your capital improvements, rental income and all sorts of things.

If you use it for your own enjoyment, be sure to limit that to 14 or fewer days per year, or you may face tax consequences if you try to utilize a 1031 Tax Deferred Exchange when you sell. Double check that the rule is 14 days or less every year.
0 votes Thank Flag Link Thu Dec 3, 2009
Hi Dale,
I would like to talk to you about some great properties that give you a gulf view that are just before Sanibel which will save you the $6.00 commute expense. These units are able to generate $2000-4000 for a two week rental in season with on sight property mgmt. Looking forward to discussing your investment options.

Sarah Garrett, Realtor
ALLIANCE REALTY GROUP
"Chosen Best in Client Satisfaction 2006-2009"
Email: sarahgarrett@argfl.com
Cell: 239-464-8620
Office: 239-274-6637x3030
Web: http://www.argfl.com
0 votes Thank Flag Link Wed Dec 2, 2009
Hello Dale-

I am a realtor on Sanibel Island and my company also offers a property management division. The lowest priced 2bdr condo is currently listed at $219,000 and can offer a rental return rate of around $8,000 a year. I'm not sure of your price range, but I can tell you that some of the nicer, higher priced condos will offer a better rental return due to the ability of demand a higher rental rate.

Another thing to consider is single family homes and duplexes. There is currently a Key West style duplex that can get a $1200 monthly rate on an annual lease per side, as well as the opportunity of get $3500 per side for a monthly seasonal rate if you put a few things into the property.

If this is any help to you or you would like any more information please feel free to contact our office.

Sarah Brady
239-839-2437
http://www.bradyrealestateteam.com
0 votes Thank Flag Link Sat Nov 28, 2009
You need to work with a real estate consultant than a real estate agent 1st thing move forward. Therefore all facts, decisions, p/l potential, CPA statements factors take inconsideration.

I am a real estate agent and consultant I never recommend for anyone to leap purchase till details are reviewed.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

http://www.lynn911.com
0 votes Thank Flag Link Wed Nov 25, 2009
Our team has worked with a number of buyers with the same goal for a Sanibel condo investment.

With the wide variety of developments on Sanibel, some with on-site rental programs and others without, it is tough to provide general rules-of thumb answers that you are looking for.

Here is a resource to view the complete landscape of Sanibel condo developments and available listings: http://www.greaterftmyers.com/sanibel-condos.php If anything catches your eye, we can drill down to the specific rental income detail that you are looking for.

Good luck with your search!
0 votes Thank Flag Link Wed Nov 25, 2009
Hi Dale,
Sanibel is one of my favorite places. I have an investor that owns a condo in Sanibel and has it in a vacation rental program. They get around $1300 weekly. There was a pre-foreclosure in her complex and I could see if it is still available. As far as most important feature; the closer to the Gulf and beaches as well as the complexes amenities; pool, etc. Please let me know if I could help you in anyway, I would be happy to e-mail you properties or answer any specific questions you may have.
Have a wonderful Thanksgiving,
Nancy

Nancy Doyle
239-209-2237
nancy.doyle1@comcast.net
http://www.nancyd.listingbook.com
0 votes Thank Flag Link Wed Nov 25, 2009
Hi Dale,

Congrats on deciding on Sanabel as your destination choice. It is a beautiful location with plenty to offer.

If you are planning on generating rental income during the entire year you should plan on a decrease in summer and off season activity. Additionally, most commercial and private rental initiatives use a sliding scale for their rental rates, with peak season generating the premium rates.

As a buyer, you should be focused on the home owner's association fees(HOA). This expense can cover a wide range of various sevices but can also be very costly. Be sure to do your homework on the complex, making sure you have reviewed the annual financial report and have a clear understanding of all major projects that have been accomplished and what is being planned for the future.

Best wishes,
The Eckler Team

Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
0 votes Thank Flag Link Wed Nov 25, 2009
If you intend to buy an investment property there, then you probably should focus more on 3/2 detached SFHs instead of 2/2 condos. The prior are more in demand, and they have higher resale value.

You'll need to run the numbers to determine your offer price.

Do you intend to buy this place with cash or (conventional) financing?
0 votes Thank Flag Link Tue Nov 24, 2009
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