If you are planning a vacation with your loved ones to Florida, that too during the peak season, you might be aware of the hike in hotel accommodation prices. In addition to this, there are also hassle of shared facilities and personal space. A better alternative to this would be purchasing vacation rentals nearby and exploring this beautiful state.
Consider Your Budget and Location
If you are planning on staying in Destin, Florida, then you can research this city on the Destin Florida Real Estate website. Here you will have access to all vacation rentals that are on sale. You can browse by area or by the type of property you are looking for. You can even opt for beach houses that come with amenities such as outdoor kitchen, pools, and hot tubs.
Now the question that arises is do you need to purchase a vacation rental? If you are planning on visiting Destin, Florida for a few days or weeks, then you can rent out a vacation home, rather than purchase one. If you plan on visiting this city regularly or looking to make extra income, then purchasing a vacation rental would be an apt option.
Research is the keyword here. This may take weeks of dedication and effort on your part. First and foremost, you need to decide on your budget. Ensure that you keep some money aside for additional expenses that might arise while purchasing your vacation rentals.
Some of the additional expenses that might crop up would be:
- Down payments
- Insurance – You might need to pay more if you are looking for short-term rentals
- Utility bills – which include electricity bills, and water bills
- Repairs and Maintenance
- Property Management Fees – If your property is empty, then you need to hire a property manager to manage your property
- Property Promotion Fees – You might need to promote your property on rental listings
- Unexpected cancellations
Secondly, the location of your Destin vacation rentals also matters. If you are renting a property near a beach or popular tourist landmarks, the rent would be on the higher side. Are you looking for properties with basic amenities or luxury ones?
Ensure that you stick to your budget and do not overpay for your vacation home. Bear in mind to keep enough in your bank account for personal or emergency purposes. If you already have a property, ensure that you paid off your loan before you avail of another one.
A word of advice here would be to tread carefully. Owning a property Destin. Florida is a huge investment and can come with a lot of risks. Since Destin is one of the popular destinations for tourists to flock to, the price of properties here would be skyrocketing to millions of dollars. If you do not have sufficient funds, it is better not to invest in vacation rentals in Destin, Florida.
Ensure that you have answers to the below questions, before purchasing a vacation rental in Destin, Florida:
- Are you looking at renting your property immediately after purchasing?
- Are you planning to rent short-term or long-term?
- How much rental income are you looking for?
- Do you have sufficient funds to pay off all additional expenses without taking a loan?
- Do you have a backup plan if your property does not generate any income?
If you have any doubt in answering the above questions, it is always better to wait, rather than make a wrong purchasing decision.
Reel in the Experts when Dealing in Real Estate in Florida
Ensure that you are well-updated with the Florida real estate market. Get in touch with local experts and understand all about the real estate industry in the state. In this way, you will have a brief idea of what properties would be within your budget.
Local experts here do not mean the locals, but licensed professionals who are credible and have a good clientele. Do not get swayed by people who claim to get you good deals and sell you properties owned by their friends or colleagues.
Other factors that you need to take into consideration while purchasing vacation rentals in Destin, Florida are:
- Enquiring about pre-approved loans
- Type of property you are looking for
- Would you be paying in cash?
- Do you have previous properties that you need to sell?
- The transition period for closing the deal
Now, that you have managed to get hold of a local real estate agent, the next task here would be to seek a pre-approved loan. This way, you will be able to determine how much would be your budget, making it easier to you to search for properties within that range.
Next would be searching for the ideal type of property. Are you looking for condos, beach homes, or luxury homes with basic amenities? How many rooms do you want? Based on your requirements, your real estate agent will be able to narrow down the properties to check out.
Ensure that you always inspect the property to understand what you are getting into. If you are investing in an old property, does the property require a complete renovation or can it be upgraded with minimum repairs?
Now, if you have the money, you can always pay upfront in cash. In such cases, you need to show sufficient proof such as your bank statements, a letter from a Certified Public Accountant (CPA), or a Financial Planner.
If you have an existing property that you need to sell off, it is recommended that you first sell off that property and use the money to purchase your vacation rental in Destin. Ensure that you settle all your mortgages related to that property, before researching a new one.
Last, but not least, you need to take into consideration the transition period between your current property and your new one. The entire process can take up to 2 months depending on the nature of your case.
Destin, Florida is known for its stretches of white sands, emerald-colored beaches, and water sports. This is one of the most sought out destinations in the world and investing in a property in Destin can fetch you great rents, provided you purchase the right vacation rentals.