In this era of high prices AND high interest rates, is it still possible to invest less than 500k in a beach property and see a return on your investment? The short answer is yes, if you know what to look for. Let's break it down now.

1) Look for a Detached Single Family Home or a Townhome with low or no HOA fees.

HOA fees can significantly cut into your bottom line. In addition, detached single-family homes and townhomes qualify for loans that have lower interest rates than condos. Down payments are also lower on non-condo loans. 

2) Count the Cost of  Condos. Why? Florida condos that allow short-term rentals are nearly always considered "non-warrantable" by lenders. Non-warrantable condos carry higher interest rates and higher down payments (20-25%) on your loan. Condos also tend to have higher HOA fees, because those fees cover the insurance on the exteriors. Insurance rates have skyrocketed, and condo owners are footing the bill. Condos also have the potential for a "special assessment" to appear at any time. This is a fee charged to owners to cover large projects like new roofs/siding/decks. It can be thousands of dollars, and as an owner you are required to pay. With a detached single-family home or townhome, you are in control of these costs and repairs. 

Bottom line: the higher interest rates and HOA fees that come with condos are making it increasingly difficult to turn a profit. Get pre-qualified BEFORE you view properties to know what your monthly payment on a condo would be.

3) Look at a secondary beach community, just outside of the busiest tourist areas. My recommendation for the Panhandle is Mexico Beach and Port Saint Joe. Those of us who live in the busy Destin to Panama City Beach area know they're a great escape from the madness of the peak season crowds. We love the laid back vibe and seemingly endless stretches of public beach. 

Let's dive into the beautiful coastal towns of Mexico Beach and Port Saint Joe, located in Florida's Panhandle on the Gulf Coast. Whether you're seeking a fantastic vacation spot or considering an investment in a short-term rental property by the beach, these two charming towns have got you covered. So grab a refreshing beverage, put on your flip-flops, and let's explore the endless possibilities awaiting you!

1. Welcome to Mexico Beach: A Hidden Gem on the Gulf Coast:

Nestled along Florida's stunning Gulf Coast, Mexico Beach beckons with its unspoiled beauty and laid-back atmosphere. Imagine pristine white sands, sparkling emerald waters, and gentle sea breezes caressing your face. Ah, pure bliss! This quaint town is perfect for those seeking an idyllic beach vacation away from the hustle and bustle.

2. Port Saint Joe: Old-World Charm with Modern Flair:

Just a stone's throw away from Mexico Beach lies the charming town of Port Saint Joe. With its rich history and small-town ambiance, Port Saint Joe seamlessly blends old-world charm with modern comforts. Stroll through the tree-lined streets, explore unique boutiques, and savor mouthwatering seafood at local eateries. You'll instantly fall in love with the warm hospitality and the sense of community here.

Both Mexico Beach and Port Saint Joe offer an array of activities and attractions to keep you entertained throughout your vacation. From world-class fishing, boating, and scalloping to snorkeling, paddleboarding, and beachcombing, there's never a dull moment. Feel the thrill of reeling in the catch of the day, embark on a dolphin-watching excursion, ride horses on the beach, or simply relax on the pristine shores while soaking up the sun.

A Wise Investment: Short-Term Rental Properties by the Beach:

Now, let's talk business – investing in a short-term rental property in these beachside towns. Imagine having your very own slice of paradise to escape to whenever you desire, all while generating income through vacation rentals. Mexico Beach and Port Saint Joe are sought-after destinations for tourists seeking coastal getaways, making them prime locations for your investment dreams.

• High Demand and Occupancy Rates: The allure of a beach vacation attracts visitors year-round, ensuring a steady stream of potential renters for your property. Current yearly occupancy rates average between 60-70%*. With the right marketing strategy, you can maximize your occupancy rates and generate that all important return on investment. For more information on short term rentals in the area, see the blog post: Emerald Coast Investment Property 101. 
• Appreciation Potential: The real estate market in both Mexico Beach and Port Saint Joe has shown consistent growth over the years. In May 2023, even in this stalled market, prices were up 7.6% over the previous year**. As these beach towns continue to gain popularity, property values are likely to appreciate, offering an excellent opportunity for long-term financial gain.
• Tax Benefits: Owning a short-term rental property comes with tax advantages. You may be eligible for deductions on expenses like property management fees, repairs, and maintenance, helping to offset your tax liability.
• Your Own Slice of Paradise: Beyond financial gains, owning a vacation property allows you to create cherished memories with your loved ones. Picture spending quality time on the beach, indulging in fresh seafood, and experiencing the coastal lifestyle firsthand. It's the perfect blend of investment and personal enjoyment!

So there you have it, fellow wanderers and aspiring investors! Mexico Beach and Port Saint Joe are two Florida towns that hold immense potential for unforgettable vacations and lucrative investments. From the pristine beaches to the warm community spirit, these coastal gems offer a slice of paradise you won't want to miss.

Whether you're seeking a beachfront haven for your family or a smart investment opportunity, Mexico Beach and Port Saint Joe are great choices. So pack your bags, grab your sunglasses, and prepare for endless sunny days and incredible memories. The shores of Mexico Beach and Port Saint Joe are calling you home! Contact the Endsley Team at Gulf Realty 30A to get your search started. Thanks for reading friends!

- Julie

*SOURCE: Airdna.com

**SOURCE: floridarealtors.org