Investing in Orange Beach and Gulf Shores rentals

Who is this for?

Most investors I work with plan to rent their property short-term most of the year. Some come down and stay a few weeks. Others never stay at all. Many are buying their first rental. Some already own one and want to add another. Most found me on social media after following my Orange Beach and Gulf Shores videos for a while.

I also help owners sell their rentals, whether they're cashing out, trading up or moving on.

What worries investors most?

If it's your first rental, it's just new. You don't know what you don't know. And a listing on Zillow won't tell you the things that matter most here: what the rental rules are, what the assessments are, and what the building has coming up.

What do I check first?

For a condo, I start with insurance and assessments. Insurance rates have climbed over the last few years, so most condos here now have insurance assessments. I look at the trend. In most buildings, those should be going down each year, and the trend tells us what to expect next year.

Then I check special assessments. Most condos here already did their big repairs after Hurricane Sally in 2020, so we're seeing fewer new special assessments. But some buildings still have work coming, like windows, balconies, siding, stucco or a roof. I want to know what's been paid, what's still owed and what's being discussed, so you're never surprised.

Next come the rental rules, then the amenities: deeded beach access, indoor and outdoor pools, a fitness center, boat slips. Then I get rental history from the seller or the management company. If there isn't any, I get projections from property managers I trust. Sometimes simple cosmetic updates can raise what a unit can rent for.

Why do rental rules matter so much here?

Because they change from building to building, not just area to area. Most beachfront condos allow short-term rentals, either with no minimum stay or a 3-day minimum. Many places across the street from the beach still allow short-term rentals too. On the Cotton Bayou and Old River side, some properties with boat slips have a 7-day minimum. Others have 15-day, 30-day or even 6-month minimums. You can't judge an area as a whole. A neighborhood that's mostly 15-day minimums can still have a couple of buildings that allow short-term stays.

The most common mistake I see is buying without confirming those rules. If you're looking on Zillow, you probably won't know a building's rental rules or its assessments unless you're local. The second most common mistake is writing off an area that should still be on your list.

How does it work if you don't live here?

It starts with a call about what you want: rent it, use it, or both, and what you like and don't like. Then I set up a home search we share, so I can see what catches your eye.

If you're not coming down, I tour homes for you on FaceTime and record videos. If you are coming down, I line up showings, and I save the last day to go back to your top two to five picks and look at them closely.

Most offers are signed online. Once we're under contract, I schedule inspections, connect you with insurance agents for quotes, and gather the HOA documents, financials and meeting minutes for you to review. Most of my investor clients close remotely.

On most of my investor purchases, we've negotiated a price below the asking price.

More on buying from out of town

Can you buy here through a 1031 exchange?

Yes. I've worked with several buyers doing that. A 1031 exchange lets you sell one investment property and buy another while putting off the taxes. The deadlines are strict. You have 45 days after your sale to name the properties you might buy, so the planning has to start before you sell. Your tax advisor and a qualified intermediary handle the exchange rules. My job is making sure you have real options lined up in time.

One couple was selling a rental home in Kentucky. They found me on social media, and it turned out the husband and I were both Sigma Chis at different colleges. We made a plan before they even listed their Kentucky home, so we could watch the market and build a list. Once their home was under contract, they came down for four days, and we saw 20 to 30 condos. That's a lot, but they might not get another trip, and they needed a first, second and third choice in case their favorite sold before their own sale closed. After it closed, they came back, and we took a hard look at their top picks. They named their properties within the 45 days, and we closed quickly on unit 4063 at Phoenix IV in Orange Beach. They use it as a family some of the time and rent it short-term the rest.

A couple from Kansas City didn't have that kind of time. They had already sold an investment property and had looked at Lake of the Ozarks and South Florida before choosing the Alabama Gulf Coast. That's when they found me on social media, with their 45-day window almost gone. We had a discovery call, I lined up properties, and they flew down within a couple of days. They picked the one that was by far their favorite, and we named it right before their deadline.

If you're planning an exchange, call me before you list the property you're selling. The more time we have, the more options you have.

What have I actually done?

At Sandy Shores West on West Lagoon Avenue in Gulf Shores, I've handled four sales in one building. A client in California bought #101 without ever seeing it in person, using my FaceTime tours and videos, and rented it short-term. Later, I sold it for her for $295,000. I also sold #202 for $310,000 and #302 for $315,000, each for a different owner.

The fourth, #203, had expired with another brokerage without much interest. The owners reached out because of my social media marketing. I listed it and got several showings. Then a Florida investor found it on my social media, bought it without ever visiting in person, and now rents it short-term. It sold for $330,000, and I represented both sides.

That same California client later came back to add to her portfolio. She bought B-204 at 920 W Lagoon Ave in Gulf Shores for $199,000, again without seeing it in person.

An out-of-state buyer toured with me on FaceTime first, then flew down, and we looked at several homes. He chose 455 Buchanan Ct W in the Fort Morgan area of Gulf Shores for $615,000 because it was close to the beach and dog-friendly. They bring their dogs when they stay, and it's a short-term rental the rest of the time.

Another buyer wanted a boat slip above all else. They bought unit 1502 at Phoenix on the Bay in Orange Beach for $1,475,000 for the bay views and the slip. They'll rent it some and use it a lot, and they plan to buy more here.

A Kentucky couple bought unit 4063 at Phoenix IV in Orange Beach for $710,000 through a 1031 exchange and rents it short-term.

On the selling side, I sold SeaSpray 723 in Perdido Key for $670,000 for owners who didn't use it as much as they'd planned and wanted something they'd enjoy more. I sold unit 1B at 28900 Perdido Beach Blvd in Orange Beach for $650,000 for a family that had owned it since the building went up. And I sold 4616 Old Bay Ln in Orange Beach, a short-term rental in a community that allows them, for $1,035,000.

Sale prices from public records.

What don't I do?

I'm not a property manager, but I can introduce you to boutique and larger management companies I trust. I'm not a tax advisor, so talk with yours about deductions and depreciation. And I'm not a lender, but I can connect you with lenders who offer investor loans, like DSCR loans and bank statement loans.

What about when you're ready to sell?

I help investors sell too, whether that's to buy something bigger or to add to their portfolio. Several of my investor clients are repeat clients, and when I see something that looks like a good deal, I send it to them first.