Can You Really Own A Piece Of Paradise For Free?

Have you ever dreamed of owning a place on the water? Orange Beach, Alabama is the perfect place for that - we have LOTS of water, the weather is fantastic, and the people are friendly. What if I told you that you could own a condominium on beautiful Wolf Bay, with a boat storage lot and a launch, and it would virtually pay for itself? I know - it sounds too good to be true. Stay with me, though, and we'll run the numbers.


Bayview Condominiums are located in Orange Beach, right on Wolf Bay, and Unit 58 is currently available. It's a 2 bedroom, 2 bath, 850 sq. ft. cutie, listed for only $174,900.00. Check out the full listing HERE. If you purchased this condo - and believe me, you should - and got a standard, 4% conventional loan, your monthly payments would be:


$ 174,900.00                                                         $ 174,900.00

-    34,980.00     (20% down payment)                              0.00      Down Payment

$ 139,920.00     Amount to be financed                $ 174,900.00    Amount to be Financed

4% for 30 yrs.                                                      4% for 30 yrs.

$        668.00     Per month                                   $         985.00      Per month

x          12          Months per year                          x            12          Months per year

$     8,016.00     Per Year                                      $    11,820.00      Per year


Bayview's homeowner dues are $368.00 per month, and include association management, common area insurance, common area taxes, common area maintenance, reserve funds, pest control, basic cable, garbage, and water/sewer. That's $4416.00 per year.


Property taxes in Baldwin County, Alabama are some of the lowest in the country. In 2015, the tax for a unit similar to Unit 58, but used as investment property, was $832.00. Unit 58 wasn't a rental, and the taxes were only $416.00 for 2015.


Meyer Vacation Rentals, one of the biggest rental management companies on the Gulf Coast, publishes a report showing average rental income from properties in their program. In 2015, a 2/2 unit at Bayview had an average rental income of $14,344.00, with $15,970.00 as the high. These figures are based on minimal use by the owners during peak vacation times, and aren't guaranteed income, but Unit 58 certainly has the potential to meet or exceed these numbers.


So, what do we have when we total up the numbers? If you get a standard loan with 20% down, your yearly costs would be:

$  8,016.00   Mortgage                                            $15,970.00     Rental Potential

$  4,416.00   Condo Fee                                        - $13,264.00     Yearly Expenses

$     832.00   Taxes                                                   $  2,704.00    

$13,264.00   Yearly Expenses


If you place your condo on the vacation rental market, you'd potentially have $2,704.00 left after basic expenses to take care of insurance on the unit and electricity for the year. Keep in mind that rental companies charge a percentage of your income to manage your property, but renting it yourself on VRBO or one of the other rent-by-owner sites is an option to consider. 


Can you own a piece of paradise for free? Well, maybe not for free, but you can purchase a condominium and put it to work for you. Vacation rentals in Orange Beach, Alabama are virtually a year-round business and are growing in number every year. If you've been looking for a great investment, this could be it! Remember, you can live here, too!