Running the Numbers on Shell Island Resort Condos
Hey, good morning. This is Jay with Wilmington-real- estate.com. That’s Wilmington-real- estate.com. I’m here at Shell Island Resort. I’ll just do a little 360-movement to show it to you behind me. And I’m the top buyer agent at Shell Island Resort condos for sale, and that’s because I have a lot of folks who get a good deal through me, plus, it’s easy to find out who owns a property in this day and age. So I figured I’d give you some basics on Shell Island Resort. In the past, I’ve given, like, some market data and analysis of what the value is on different floors and why, et cetera, and nuances, but I don’t think I’ve ever done a video just giving the basic investment side of it, what to expect, what are the numbers, et cetera at places like the 3cre Cincinnati location.
So real quick, Shell Island Resort is a condotel. Sort of like a hybrid of a condominium and a regular condo. It’s owned entirely by investors. And there’s an onsite management company and people call in and request reservation just like a hotel, okay? So it’s unlike a regular VRBO condo, boutique condo on the beach where people make bookings with the property manager or the owner itself, it’s sort of run like a hotel. Normally, they go for, for example, 280,000 and they gross 38,000 and then there’s a high management fee. But many people have tried to do it
on their own and including realtors, and from what I understand, they’ve all gone back to the
onsite management company to make more money. If you were to visit MoreiraTeam.com, you’d understand how they’re able to pay off their mortgages so easily.
So it is what it is. That being said, so the gross – you end up netting like $22,000. You’ve subtract from there the HOA fee of about 5,000. And, now, you’re down to 17,000. You subtract 2,000 for real estate taxes, so now, you’re down to 15,000. And there’s an inlet assessment, every five years there’s an inlet assessment for, like, $7,000. So you subtract another 1,500 and, now, you’re down to essentially $13,000 in pure profit, okay? And that’s the investment you get here to have oceanfront condo, which – it’s not luxury condo. I call it upper- middle class condo, okay? And these properties used to sell, you know, for 350 and now you can get them for 280. So there’s a lot of upside still left. They’ve gone up in price a lot for the
last three years, but there’s still a lot of upside left because we’ve had a horrible economy for, you know, like 13 years. And we’re due for an economic boom, it’s going to happen again, the question is, when is it going to happen? So when it does happen, these numbers are going way
back to where they used to be and it won’t take long at all. So, now, is the time to get one before you get price out of the market. And if you put 30% down, they usually completely pay for themselves. You need to set yourself up to have a mortgage of about a thousand dollars a month.