Looking for a great Real Estate Investment? This fantastic new construction coastal cottage may just fit the bill! In my opinion this is a “checks all of the boxes” short term vacation rental!
Gold Fortified, Check!
In our area of Gulf Shores, Orange Beach, and in particular Fort Morgan the GOLD FORTIFIED badge of honor is held in high esteem. Rising costs are just the norm now it seems. With insurance on the rise over the last several years, I have been very adamant that my buyers and investors set their aims on properties that have been built to the Gold Fortified standard. Having this certificate will nearly cut the annual insurance premium in HALF.
This cottage is located mere STEPS from the Gulf. Everyone loves the views and proximity of real estate that is beach front, or within beach view. What people do not love is the COST associated with ownership of a home so close to the beach. New construction and gold fortification is the way to go when aiming to purchase a beach home.
Location, Check!
With an oversized balcony orientated towards the Gulf, this home has views! Step out of the home and a mere 200 yards away you will find the Cabana Beach neighborhood private beach access. Cabana Beach is a neighborhood that has the look and feel of a natural beach geography. The homes are built with dunes and natural foliage still intact. You will not find a cement jungle of modern-day infrastructure. This area screams nature, wildlife, and tranquility. Located down the long peninsula that leads to the historic Fort Morgan, people who love to come to the beach to enjoy the beach and get out of overwhelming crowds of a tourist town, come to this area to seek a get away from it all feel!
In addition to the simplicity of the natural beach environment, Cabana Beach also offers something extra that other neighborhoods and subdivisions do not. Property owners of Cabana Beach also have the option to join in membership of the amenities offered at the popular beach condominium The Beach Club located just adjacent and also mere steps away from this home’s location. Those amenities include beach side pools and many other enjoyments of the typical beach vacationers! With the Fort Morgan peninsula located between the Gulf of Mexico and Mobile Bay, Cabana Beach also has access to a fishing pier on Mobile Bay.
Outstanding Potential Earnings, Check!
While this home is new construction and has not been placed into a rental pool, there are projections of other similar homes, that are older, without Gulf views, and far less superior interiors that are bringing in rental returns between 100-135k per year. Utilizing the low end and upper end of these numbers against the expenses the cash-on-cash Cap Rate sits between 3-12%! This also includes the expense of a 15% management fee. I have coached and assisted many of my vacation rental investors in self-management. Without the 15% management fee, that annual return is greater yet.
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Alisha Hileman, REALTOR Keller Williams, Alabama Gulf Coast | 251-609-4434
Listed by: Keller Williams, Alabama Gulf Coast Realty
Cap Rate Assumptions Used:
{Purchase price: $1,000,000, 25% down, at 8.0% interest.}
