AAbsolute

Attached is a link I found for a home that probably will prove to be the best deal in WaterSound Beach. My company knows a lot about this project and can finish this home in 6 weeks for well under $100,000. We have a list of vendors and subs who have been paid and are on standby to finish this home. I have plans available if anyone has interest.

MLS #508635 - WATERSOUND BEACH Home for sale, WATERSOUND real estate listings, WATERSOUND FL MLS Listings

Smiling JOe

I remember that house going pending back in October 2008, when it was priced at $975,000. It was well-discussed on another thread regarding the cost needed to complete.

aabsolute, does it totally ruin it for you to know that it is a short sale? The good news is that having that earlier contract which fell through, maybe the Realtor knows what price the lender will accept.

The link hasn't updated the new price yet. It still shows the old price of MLS#: 508635
Price: $825,000.

However, the new price is $789,000. >>>click here<<<

www.emeraldcoasthomesonline.com will show you updates much more frequently. It is the public ECAR site.

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SHELLY

...I would think so, seeing that the Realtor is the bagholder on the property.

.

__________________
But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

AAbsolute

Thanks for the useful post. I'll save that link you gave us for ECAR.

I remember reading about another home in Watersound Beach that was sold pre-completion but thought it was on Boatwright and Salt Box. If anyone sees the past Thread on this one can you merge the two?

I'm indifferent to this home's purported short sale jargon. Just understanding the facts as I know them I believe this price is going to be near impossible to beat that's all. The future will let us know.

ASH

The original link showed the updated price when I opened it this morning.

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Anthony

AAbsolute

I guess I was wrong. I found the same house in Watersound for about $400,000 less. This one would require 12 weeks and about $120,000 to finish out with some good upgrades.

http://emeraldcoasthomesonline.com/(...spx?mls=509728

AAbsolute

I've gotten a couple e-mails for plan copies. Here they are:

Attached Files

	A1.pdf (306.2 KB, 44 views)
	A2.pdf (182.7 KB, 15 views)
	A3.pdf (111.2 KB, 11 views)
	A4.pdf (250.3 KB, 7 views)
	A5.pdf (313.2 KB, 5 views)
	A6.pdf (265.2 KB, 6 views)
	A7.pdf (292.2 KB, 9 views)

traderx

How much is the lot worth?

__________________
"It is a mistake to try to look too far ahead. The chain of destiny can only be grasped one link at a time."

--Winston Churchill

AAbsolute

Lot 41 has a home and carriage house that will take under $100,000 and 6 weeks to finish. IMO, the lot is worth $400 or so.

Lot 1 has a home that could be finished real nicely for about $100,000 and 8 or 12 weeks depending on selections. IMO, the lot is worth $300,000.

I'll attach 1 different photo from the Tower of each.

Attached Images

	3112.jpg (22.7 KB, 475 views)
	3134.jpg (13.3 KB, 468 views)

AAbsolute

I can't find the listing on the site you linked. The other sites either show a price increase or are still showing old info.

Do you have a special way to search?

30ashopper

All three links are broken. I guess they either sold or went into foreclosure. Anyone know the addresses?

30ashopper

Here's the google cache -

MLS #508635 - WATERSOUND BEACH Home for sale, WATERSOUND real estate listings, WATERSOUND FL <b style="color:black;background-color:#ffff66">MLS</b> Listings

30ashopper

There we go, the mls number changed I think -
WATERSOUND FL Detached Single Family FOR SALE: MLS#510337, WATERSOUND BEACH, 5Bd, 5bth, $850,000

So AAbsolute, what happens in a situations like this? Did the owner simply stop paying the builder half way through?

SHELLY

Looks like the price is going back up...who-da thunk--'specially for a place where you have to "BYO Graninte Countertops"

.

__________________
But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

AAbsolute

There were 3 Owners. Every request for re-payment was like playing who's on first . Hindsight (saved e-mails) is 20/20.

Every sub on the job is ready, willing and able to finalize their part of the job immediately. This is a really good price and an easy final trim out.

AAbsolute

That's what it looks like to me too. I was surprised when it was listed as short sale. It never seemed like a genuine possibility.

AAbsolute

http://ecarmls.com/EmeraldReports/li...?ID=5516669046

This is the one at $450,000. This home could be completed and lived in or rented out this season for $550,000 all in. That's about $200 per square foot land included.

How can you do better?

AAbsolute

I hope this link works.. http://ecarmls.com/EmeraldReports/li...?ID=1316874327

There seems to be a lot of movement on these related properties.

AAbsolute

I've heard the talk and:

Yes, the Pella windows and doors are impact glass over there on the $450,000 WaterSound Beach home. Yes, the siding is #1 premium blue point cedar shake on the $450,000 WaterSound Beach home. Yes, the roof is #1 Heavy pressure treated cedar shake on the $450,000 WaterSound Beach home. Yes, the hurricane tie down system is by Structural Technologies and has it's own seperate engineer's certification on the $450,000 WaterSound Beach home.

30ashopper

What was the final plan on that stairwell? I've seen WC homes with stained wood star cases, this looks like it was destined for carpet? Or is that stainable wood? It's a nice looking little house overall, 450K aint bad for WC.

AAbsolute

The $450,000 home is South of 30A by the Bridges poolhouse in WaterSound Beach. We cut the stair stringers to meet code using 3/4" hardwood floors at all living areas, landings and hallways. We cut the stair stringers anticipating using 1" hardwood stair treads.

This $450,000 home is the first bank owned property I've been aware of that we couldn't buy a comparable lot and build a home for less. The home across the street sold as a short sale or REO for $1,250,000 this past May. Many of the vacant lots in that section of WaterSound Beach sold for over $800,000.

Like I said, when you consider you could be in this 4 bedroom, 3 story home trimmed out and landscaped the way one would like it for about $550,000 I don't know how the price could ever be beat.

Attached Images

walton_maps.jpg (140.1 KB, 351 views)

traderx

BTW, what is the price of the house?

__________________
"It is a mistake to try to look too far ahead. The chain of destiny can only be grasped one link at a time."

--Winston Churchill

AAbsolute

The house and lot as it sits today is $450,000. It is not far from being finished, about $100,000 and 8 to 12 weeks depending on how it is designed by the buyer.

The original build contract was about $450,000. I don't know how Countrywide can afford to sell it for $450,000. Countrywide had $1,150,000 in it.

SHELLY

Countrywide couldn't give a damn--we taxpayers <and our kids/grandkids> are going to foot the bill for this fiasco.

.

__________________
But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

AAbsolute

That is evident.

AAbsolute

Well that didn't take long. 31 days to get a contract.

I am not a Realtor, but I watch these things pretty closely. I don't know how someone could do better in WaterSound Beach than these two projects. I have seen so much activity at these homes over the past 3 weeks it makes it seem like there is no economic worry.

I'm glad for the Seller and I think it is most surprising that the price looks to have been raised $65,000 on that one during this Thread. It looks like Hillary Farnum was involved in the contract too. She is doing very well in that marketplace and knows the product as well as the most in tuned.

needacoolname

Can someone with local rental experience please ballpark a cash flow for this as a short term vacation rental ?

Assume 100K to complete and 50K to furnish and equip( too low?? is that realistic ?? ), out of town owner so a full service management agency would be utilized.

Will rental - expenses( management, vacancy, insurance, taxes, what else did I leave off?) come close to making the mortgage of 3383( 550K total, 20% down, @ 8.5( from bankrate.com))

It would be great to get some real world local input, thanks for any help

scooterbug44

You also need to factor in community fees.

__________________
"I hate to break it to you, but this year (and probably the next few) was going to suck even if Jesus himself was president. These problems were not created overnight and they aren't going away overnight." -Jdarg

needacoolname

Yea, thanks, good one, the mls said it was 1000 a quarter, but just to confuse the issue the 1000 per quarter includes Accounting, Ground Keeping, Management, Recreational Facilities, Trash Disposal, Security. I don't really know what "Management" covers, but for 4k a year I'm guessing that it is not full vacation rental property management......???

scooterbug44

__________________
"I hate to break it to you, but this year (and probably the next few) was going to suck even if Jesus himself was president. These problems were not created overnight and they aren't going away overnight." -Jdarg

AAbsolute

I'm just a regular guy lacking formal investment or banking education. I think Lot 1 which is the $450,000 home would rent for $3,000 per month in a long term rental arrangement. If someone put together a real vacation rental program there would be about $45,000 to $55,000 in seasonal rental income.

I know the home can be completed just right for either vacation rental or personal residence for $100,000. I think it could be furnished complete with everything it would need to put into the rental program for $30,000.

AAbsolute

WaterSound Beach also has a full gym which is very, very nice and there is no charge for Owners per visit. WaterSound Beach has kayaks and other recreational stuff at no cost. WaterSound Beach currently has dues of about $996.00 per quarter. There's 24 hour security and several pools. Most of the pools have a cottage attached to get out of the weather. The cottages have fireplaces and living room type space as well as full commercial kitchens so Owners can have extended family or guests get together's.

SHELLY

What is your basis for that amount of seasonal rental income?
.

__________________
But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

fisher

....and taxes, and insurance, and utilities, and grounds maintenance, and.......

AAbsolute

I think you are asking why I think that amount is accurate. If so, I have built about 100 buildings in Walton County. Much of them were in resort rental communities. I choose to live where I work so I can be at my work. For about 10 years I have lived in Rosemary, Watercolor, Seacrest etc. Building these homes and living and sometimes renting these homes has given me valuable real world experience. Some customers of mine, and friends have actively rented their homes through Coastal Living Magazine as do it yourselfers. Some customers and friends have actively pursued short term rental business through local rental agencies. Some customers and friends use VRBO.

WaterSound Beach has a JOE run cottage rental agency that is heavy condo, but lacking single family residential like the subject property. They rent SFD's well. Another friend chose to go the VRBO route in WaterSound and has real solid bookings. One other person uses Coastal Living to advertise and is consistantly booked solid and gives overflow rentals to someone I know.

If your question is about basis as an accounting term, I have no knowledge or advice.

SHELLY

I'll rephrase my question:

X x Y = $45,000 - $55,000

Please solve for X and Y

.

__________________
But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

SWGB

Hmm, all that expertise and you forget that a mortgaged house generally includes the insurance in the payment and grounds maintenance is covered in your HOA dues.

needacoolname, no one can honestly show you a cash flow for any rental property in this market. The fact is that the low groan of non existent rentals this summer is still around the corner, but you can join in the chorus of whistlers that are trying to drown it out.

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AAbsolute

There are only a couple primary colors, but their combinations and variations are unlimited.

There are only a couple tastes, but their combinations and variations are unlimited.

There are only a couple notes, but their combination and variations are unlimited.

To succeed in the business of vacation rentals is like any other challenge. To do your best I believe you should engage in the business conventionally, but be inexhaustable in your efforts and be unconventional to get the most out of it.

Something along the lines of this home South Walton Beach Rental - House

or this South Walton Beach Rental - Beach Cottage House

or this Florida Panhandle - House

or this South Walton Beach Homes - Home

or this Coastal Cottage See a Beautiful Sunset - House with Carriage House

or this South Walton Beach Vacation Rental - House

or this 3BR/3.5+BA Fantastic Views of the Gulf - Vacation Rental Availability Calendar

11 weeks at $3,500 with a 5 month winter rental at $2,300.

SWGB

Can you find one of these? I've never heard of one.

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AAbsolute

I've rented all over 30A month to month. Carriage houses in Rosemary are 1,000 per month, main houses can be 2,000 and up. We rented both 4 and 5 bedroom in Watercolor monthly. There are always people renting beautiful homes month to month.

needacoolname

I'd like to thank everyone for all of their input on my cash flow question. I know it takes time and effort to respond to these questions and I do appreciate everyones thoughts and insights .

So on the income side, on the low end it might be a very very slow summer (thanks sowalgayboi, keep whistling) up to (an apparently skeptically received) 55,000( thanks AAbsolute). So I think I've got some numbers here.

On the Monthly cost side, I've got:
Mortgage: 3383(Principle + Interest, only, 550K total, 20% down, @ 8.5)
Taxes: 364( Walton county pa web site county rate @550,000 market value)
Utilities: 300
HOA: 332
Maint: 458( 10% of max estimated income )
Property management: 1800(40% of 55,000 /12 )
Insurance: 500???( Please help, I've searched this forum, I've goggled, can't figure a way to estimate full insurance for this property. I know its going to be bad )

Using the highest income estimate of 55,000 l have to carry: 2554 (7137cost-4583income)

Is it possible to manage it myself even though I live 3 hours away to save $$$ ?

So, this property at a 50% discount will have a negative cash flow of 2500 at best. Does that seem about right or am I missing something? How do the people who paid the full million for their watersound rentals do it ? Just to be clear, I am not trying to be negative or sarcastic in any way, just trying to learn a little about walton beach real estate.

Thanks again

SHELLY

You are missing something....you're using the "Highest Income Estimate of $55,000" when you're figuring your possible gains/losses--you'd better figure the worst case scenerio...if you can financially handle that, then you'll be OK. Can you dig it?

.

__________________
But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

needacoolname

Yep, best case is 2554, worst case is 5337( no income, no management fee( but I bet they will still find away to charge me something even if they don't bring any renters)

needacoolname

Yep, best case is 2554, worst case is 5337( no income, no management fee( but I bet they will still find away to charge me something even if they don't bring any renters)

SWGB

40% is the high end of management fees. Talk to some of the other rental companies and the area and your looking at something more reasonable like 15-30%.

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SHELLY

You might also want to figure in the cost of furnishing and equipping the joint...I know when I drop $3500 per week for a vacation rental, I expect more than plastic K-mart chairs; a cable spool-dining table; a Goodwill futon; and Goose pattern melamine dishes.

Start with a decent $120+ coffee maker; (and a coffee bean grinder), and work up from there.
.

__________________
But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower

AAbsolute

We talked a bit already about an interiors and rental ready finish of $35,000. I don't know the interest carry on $35,000 so it needs to be calculated. There are some home furnishing companies doing 12 months/0 down/same as cash. I furnished one 5 bed/5 bath in WaterSound Beach for 17,800 excluding sheets, dishes, etc.

AAbsolute

All the VRBO links I proferred were rentals by owner. In that scenario there is no $1,800 per month in maintenance fees. I think you'll find that most successful VRBO's have small, local cleaning/maintenance companies handling the check out responsibilities for about $200.00 per visit on average. The trade off is that you may well get WaterSound Beach's Cottage Rental Company to take this home into their program and possibly gross $65,000. They charge a full service rental management fee, but your guests get use of the WaterSound Beach club as part of their program.

AAbsolute

With a wise VRBO plan you may now be talking about $850/mo as part of an overall plan. I think you'll find if you interview VRBO users that they get a predictable amount of repeat renters. The individuals I know treat this as a business and track their advertising successes and failures to adjust their listings over time.

I believe that this $450,000 WaterSound Beach home with thoughtful finishes will completely cash flow by the 3rd season and be profitable from that point forward for many years. WaterSound is JOE's main brand now and WaterSound Beach is the pinnacle of the brand.

I believe this home could be finished and decorated rental ready for under $600,000 and sell for $825,000 within 100 days.

SHELLY

...why aren't you doing it then?

.

__________________
But hey...Top Ramen tastes a whole lot better when you eat it off of a Granite Countertop. (Mr & Mrs Too Much Homebuyer)

Florida State Flower