408 Kelly Plantation Drive, Destin, Florida 32541
3755 Scenic Highway 98, Destin, Florida 32541
57 Sunfish Street, Destin, Florida 32541
4565 Nautical Court, Destin, Florida 32541
3655 Scenic Highway 98, Destin, Florida 32541
400 Lee Lane, Destin, Florida 32541
520 Gulf Shore Drive, Destin, Florida 32541
287 Tequesta Drive, Destin, Florida 32541
207 Grand Key Loop, Destin, Florida 32541
4203 Indian Bayou Trail, Destin, Florida 32541
211 Durango Road, Destin, Florida 32541
150 Gulf Shore Drive, Destin, Florida 32541
Destin Real Estate - the Best Return on Investment (ROI)
Whether you want to buy a multi-family house or a waterfront condo, an investment property in Destin can be very lucrative. While the town isn’t big (it’s just shy of 15,000 people), it has steady tourist traffic, and the population here nearly triples during the peak season. The challenge is to find a property that will create consistent passive income.
Destin has become a seller’s market, which means there are more buyers than sellers. While real estate owners in Destin stand to make a good profit from their properties, your task would be to buy a property relatively inexpensively and make it more attractive to potential renters.
Demand For Rentals in Destin
From the outside, Destin seems like a no-brainer when it comes to real estate investments: the weather is great when the rest of the country is freezing in the dead of winter, there are many things to do and adventures to be had, and the beaches are clear, calm and inviting.
Destin has a booming real estate market, and while you can buy a property for short-to-medium rentals on the shore, be ready for competition. From the countless offers that you have to compete with that raise real estate prices, running a property in Destin will keep you on your toes.
Savings You Must Possess to Rent or Invest in Destin Real Estate
To figure out whether a purchase makes sense, you should come up with a price/gross rent ratio that will help you figure out how much your property will generate in rental income versus how much your mortgage is going to be.
For example, if you buy a townhouse in a residential area of Destin for $200,000, and it grosses $20,000 in income per year, your ratio is going to be 10. In general, the smaller this ratio, the better the indicator of a good investment.
When buying a residential property, you can make a down payment as low as 3 percent. However, you should also know that vacation properties are financed differently from residential ones. Vacation home loans require you to meet a whole different set of obligations and typically require about a 10-20 percent down payment.