As I discussed earlier this week on my IGTV/Youtube Vlog, Port Aransas and North Padre Island, Texas are very well known for being a vacation escape for many residents of San Antonio, Austin, Houston and surrounding areas. When temperatures can reach over 110 degrees F, the heat of the city can become too much and the draw to the gulf breeze becomes more desirable.
In my vlog I discussed 5 things to consider when purchasing a vacation home, either for vacation use, an investment property or a combination of both. Let's review those now!
#1 ASSESS THE MORTGAGE AMOUNT THAT FITS YOUR BUDGET. In this day and age there are many tools to use on the internet to calculate an approximation of what your mortgage payment might look like. This is a raw estimate of the mortgage payment of course but it indeed provides an idea as to what price range you may be able to afford when house hunting.
#2 ASSESS ADDITIONAL COSTS ASSOCIATED WITH THE PURCHASE. So you've got your approximate price range you can afford, now let's consider extra costs. You will want to investigate details like taxes, insurance (including wind and flood), HOA dues, maintenance, and utilities to name a few things. If you are planning on using this property as a rental you will also want to shop around for property management companies, they typically take a percentage of the rental profit. Add these items to your budget calculation.
#3 RESEARCH ALL FOUR SEASONS. This is a good idea especially if you are wanting to do a combination rental property/vacation home. You will want to find out what weekends you can capitalize on from a rental income stand point. Memorial day and July Fourth can be a great time to make some serious rental revenue. In the off season or winter perhaps you might consider doing a long term rental on your property. There are many "Winter Texans" that love to drive south for a reprieve from the harsh northern winter. This type of information can help you gauge how much rental income overall you can generate and then you can off set that with your expenses of second home ownership.
#4 LOCATION! LOCATION! LOCATION! This is important for a number of reasons. When choosing a vacation home that you may want to use for short term rentals, be sure that it is in an area that is zoned to allow for that. Location should also be considered from an attraction stand point for potential renters. Is it close to the beach? Downtown? Restaurants? Or perhaps your second home is for your enjoyment only. Maybe you don't want to be in an area that allows short term rentals because you prefer a more quiet setting. These are all things you may want to look at when choosing a location.
#5 THE MOST IMPORTANT TIP; WORK WITH A KNOWLEDGEABLE REALTOR®! Obviously I'm going to say this is most important because well... I am a REALTOR®! Move beyond the fact that a local agent knows all about the above tips I mentioned but also, they can tell you about any inside details of the community. Like local events, tips about the different communities and their features and even treat you to a great lunch at a local hot spot!
I hope this information gives you a little more insight in to owning a vacation home/rental property. I'm going to share a few cute listings below. You could be an owner maybe even by Spring Break and generating rental income or be using them as a vacation getaway. Let me know if I can provide you any further details on these properties or any others.
5973 Hwy 361-park Rd 53, Unit 323 323, Port Aransas, 78373
2BD/ 2BA 1040 SQ. FT. - $165,000
318 Station Street Unit 1 St 1, Port Aransas, 78373
4BD/2.5 BA 1473 SQ. FT. - $425,000