1st floor units gross 45% less Wrightsville Beach condos
Let’s talk about the rental income for ground floor oceanfront condos in North Carolina. I’m still so excited about this stand up desk thing I have now. I’m
trying to be a little bit healthier, but it’s a really cool way to do business. And even do videos like this the subject for today is what what is the hit you take financially with a first-floor unit
versus a unit on the third fourth or eighth floor? What is your loss as an investor for buying a first-floor unit at a vacation rental? But especially for a condo in the high-rise buildings. And
should you ever buy one period is a good question?
Often they’re listed at similar prices as the regular condos–regular meaning those on the second floor and higher. well I’m here to tell you you’re deluding yourself. some of these listing agents said their owners are wacko and they’re way off the mark. they’re not going to make money for you so if you’re a buyer beware of the first floor unless you really need it because it suits your needs to be able to walk right out to the beach. there are exceptions in some buildings where the first floor rents pretty well compared to the other floors. and I have an example of that actually at Surf Suites condo.
At Atlantic Towers you have several for sale right now. one so most of these are under contract but typically at Atlantic Towers in Carolina Beach the units will gross like 20,000 if they’re Pottery Barn and pimped it out all the way… maybe at the 25,000. but generally they can gross 20 grand. okay I have a statement from last year another video where it goes 21,000; the first floor however… here’s one that grossed I think twelve or thirteen thousand dollars 12,000 so it’s almost a 50 percent decrease in the gross rental income even though these people are trying to charge the same price.
1st floor grosses 21,000 and 8th floor grosses 40,000 Shell Island Resort
so let me just leave that alone right there and move on to another example at Shell Island Resort most of these properties who are grossing on the fourth floor the eighth floor they’re gross ring around 40 grand. okay the first floor there’s one here that just went under contract probably. the people who bought it because they needed to be able to walk out directly to the beach. it was probably a priority. and it listed for 239 but it only grossed $22,000 so again almost a 50% drop off in the income. so it’s important to keep in mind these first floor units they should be priced accordingly due to lower rental income.
and if you’re a buyer be careful and make sure that the ratios are right of the price to the gross rental income. there is an exception though I think at Surf Suites in Wrightsville Beach. it’s only four stories high, but the first floor can gross like $26,000 and I think higher floors were grossing a 30 or 32 grand so it was unique situation there the first floor at surf Suites may not be a bad idea at all. naturally so we’ll go into that future in the future if you ever want to see one of those with me. so now you know Wrightsville Beach condos. you got Shell Island Resort and a Carolina Beach you have Atlantic Towers. those are the main condominiums for sale and they’re very successful vacation rental properties for people. just make sure you’re on floors preferably 3 and higher, but even at Shell Island Resort there’s a second floor unit that grosses 42,000 last year in the year before. If the condo is Pottery Barn super nice inside they can hit the higher rental numbers too even though they are on the 2nd floor and higher.