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Transcript

Gulf Shores · Short Term Shopping

• 0:02
  Speaker A: Welcome to Short term Shopping, where we explore homes for sale in the best vacation markets in America. Some homes we do like, some homes we don't like. Brought to you by the short Term Shop. It's short Term Shopping. Welcome to Short Term Shopping. We are in Gulf Shores. Legendary Gulf. Gulf Shores, with one of the greatest real estate agents of all time, Mr. Jonathan Lazzarino. How you doing, buddy?
• 0:39
  Speaker B: Oh, man. Thanks for that amazing intro, Luke. I got a lot to live up to there, but. But doing well. I really appreciate it. Great to be here.
• 0:45
  Speaker A: That's great. Yep. Love Gulf Shores. We were just there about a month ago, and actually, Avery was just there two weeks ago for a tennis tournament. And we've been making our. You know, the kids are getting a little older and a lot of travel, sports, and things happening. And I know your. Your daughter's. Same. And, you know, we're just a couple hours away, so Gulf Shores seems to be in our rotation lately, which has been great. It's a wonderful place. And the water, the theme park, the little theme park you guys have there is so cool. So it's a. It's a wonderful place to visit, and we're gonna look at some properties today. Anything you want to say before we get started?
• 1:25
  Speaker B: No, not really. It's. It's still a, you know, some good inventory to choose from and negotiate, but, yeah, happy to go through these and see, see what y' all think.
• 1:34
  Speaker A: All right, cool. Let's take a look at some hollows.
• 1:37
  Speaker B: All right. Okay. So we'll have something else pulled up. Oh, yeah, just a quick update on the airport. I know I talk about it each time, but they. The ones they added in 25 are right here. So that's. We're starting to feel the increase a little bit in tourism from these direct flights in from Gulf Shores. If you haven't. I mean, two Gulf Shores, if you haven't heard me talk about it before, this is a Legion Air, which I'm excited about, because previously, you know, Pensacola, Mobile were the only areas that you can fly in. And then in 2026, these are the. The ones are adding this year to
• 2:16
  Speaker A: my hometown, Omaha, Nebraska.
• 2:18
  Speaker B: Exactly. I thought you'd like that.
• 2:20
  Speaker A: That's nice.
• 2:22
  Speaker B: Absolutely. Okay. Because if.
• 2:26
  Speaker A: Let me. Let me. Let me paint a picture. If you live in Omaha, Nebraska, you would like to get directly to the beach, believe me. So that'll be nice for them to have.
• 2:38
  Speaker B: Absolutely. Let me try to figure this out. Oh, here are just some numbers. Having trouble switching between these tabs here. Let me see if I can. Oh, there we go. Okay. Just a quick overview on the numbers just so you can kind of see what's going on with this market too or get to all these properties. But in just so far this year you can see in January it is interesting the prices have come up slightly which those haven't really ever dipped too much as a whole. But there's a lot of things to consider with that. Days on market are still high but we're still seeing a lot of inventory sitting. So I do anticipate that to change towards the mid to end of the year to be lower but 131 for January and for February, which I'll quickly glance over too. But the one thing that you can see where it's picking up, especially in February next is the closed sales are going up by you know, 14% compared to the same time last year. And then in February you can see that same number even though this is all very similar. Well, actually the average sales price is a bit up but the closed sales are gone up by 27% so it does show an increase in activity. Um, but anyway, I thought that was something worth looking at.
• 3:56
  Speaker A: Yeah, it's good to know. It's good to know. And we're seeing the same thing over here and it's, it's just a weird, it's such a weird market right now. It's almost indescribable. What's going on. You got some, some, some houses. Every now and then you get a house that's priced right and it goes quick because there are people looking. But for the most part we're seeing overpriced sellers that are just not realistic and maybe don't even really aren't really that serious about selling. Is that fair to say?
• 4:23
  Speaker B: Oh for sure, yeah. In this market people always want to find out the motivation and it's always going to be so different because there's some people who are self managing that are killing it on rentals, just want to test the market and are not really that motivated. There's some people that have been over promised by a property manager might be bleeding money in some way. And then there's, you know, and then there's others that are, you know, highly motivated for another reason. So we never know until we try. But also just to touch on that point, in this market there's also a big difference between what type of property you're looking at, what's available for inventory, the options available and usually even negotiability. For instance, with condos there's A ton of condos available. A lot more negotiability, typically with the condos. With some of the assessments that have come along and things like that. Financing has been difficult, which I do have. I've heard some, an announcement, but I'll, I'll talk about that too. But. And then even houses are different, going to move differently than condos. They're more scarce on the listing side. I can usually find a way to potentially push the value up if there's certain things going forward location wise. And then Gulf Run houses are even a different category than houses. You've seen them in some cases increase in value over these past few years. I had a client that bought a $2.875 million house. Now, I know that's expensive, but he's going to do 400k plus in gross with it. But that same house, he bought it last year, I could turn around and sell it right now, I think for 3.15 or so. And that's a very short period of time. But it's very specific. You know, I have to look at each, each property. But it's all, it's different just to let. It's more complex than just those numbers I just threw out there.
• 6:14
  Speaker A: Yeah. Beachfront is an interest. It's a curious animal because there's only so many of them. Right. That's the thing about beachfront. But they're extremely pricey, you know. Yes. Yeah. Well, you know, my thing there is as far as like sellers motivations and what's. Why are they selling and things like that. I don't really care too much about that. As a, you know, an experienced buyer, you don't really, you get to the point where you just don't really care that much. But I do want to know the sales, the history, the price history on the, on the property. So we'll look at that today a lot as well on the, on the rental listing. So if you got some houses to show us, I'd like to do some shopping.
• 6:54
  Speaker B: Absolutely. Let me see. I think I lost my screen share. One second. Okay. Okay. There we go. Okay, so I'll start out with some that I think are good deals and there's a few that may look like good deals, but I'm going to tell you why I don't think they are. If that sounds good. So this one right here, this is a go front. Speaking of go front. And I have many different price points here, but this one I think is a really good deal for a few reasons. This is in Fort Morgan. There are a bunch of issues to look out for for Gulf Run which I'm going to guide anybody through. This one is good to go on on the main things I look for with Gulf Run now this lots right now in Fort Morgan, for instance, if you can find the Gulf Front lot, which are difficult to find, are going to come be sold at a minimum of $1 million for a Gulf Front lot to then develop a house. Depending on if it's a 50, 70, 75, 100 foot lie, they're going to vary meaning what beach frontage there is on the footage I'm talking about. So this one is priced incredibly well. It's a five bedroom. You know, you can see from the pictures that it's, you know, this is pretty nicely furnished and doesn't need a ton of work. Now there are a few value adds I do see with this one, but you know, for instance you could add certain square footage in places which is kind of complex. That's stuff I like looking at too. But just generally speaking. And the main issue with this one is the floor is sunken. I think that's part of the reason that they're having issues moving it which I've talked to some contractors. There are some solutions to that too.
• 8:40
  Speaker A: What do you mean? Like there's an issue. It's. It's sunken like. Or it was built like that?
• 8:45
  Speaker B: No, no, I didn't mean that. So it's not like it's sinking due to. To an issue. But the way they built it is not the best because as you. I don't know if you can see too well from the pictures but like right here you might can see where the stairs kind of come down from the living area. There's stools right here on the kitchen. It comes down a couple of feet right there. And of course the views that are this outstanding views are right there. So a lot of people like even me, I've been living here a long time. I'll sometimes get mesmerized with the views and you could be walking and kind of that's a little bit of a trip hazard. I had a contractor that talked about some railing systems and things that he thought would be pretty inexpensive to change because raising the floor would be very expensive. And not to get into too much of the weeds of that there are solutions to discuss here. But I mean at first glance I
• 9:35
  Speaker A: don't think I need it. I like the way it looks. Is there a better picture of this living room?
• 9:40
  Speaker B: Let's see here. I mean I like the way it looks the only thing I would be concerned. And you're, you know, you're way more experienced than this. I just would be worried about a trip hazard.
• 9:51
  Speaker A: I don't think I would care. I mean.
• 9:53
  Speaker B: Yeah, I mean, I don't know if you can see that.
• 9:58
  Speaker A: It's almost like they've maybe had some comments about it and they're not showing.
• 10:03
  Speaker B: Could be that could be the case. I mean, I did ask if guests had complained about it and they said no, but I just don't know because even right there.
• 10:11
  Speaker A: Yeah. Click that one. This one, see if that's got anything. It looks like it may have. I see. Yeah, I don't. I don't mind that at all. I would have no problem with that. I think it's kind of cool.
• 10:22
  Speaker B: So, yeah, I mean, and that's something. That's really the only thing I could see here that's an issue because you could even. There's square footage to be able to add a pool there. Now, there is a permitting process to confirm this, but from everything I can see, it looks like there'd be no issue adding a pool. So this one right here, I mean, to find a five bedroom at this price is just very difficult to do for Gulf Front right now. And the numbers that these generate are enormous. So this one, I know it's a high price point, but for Gulf Front and this area, it's really not for a five bedroom. So this, to me, is definitely a very solid deal for.
• 11:01
  Speaker A: Can you keep flipping through the pictures? I like this a lot. I got no problems at all. I think that living room's cool. I mean, it's definitely got kind of a 70s vibe, but it's updated with all the colors and.
• 11:12
  Speaker B: Yeah, and you've got these vaulted ceilings here that. I mean, they have these. But if you had these open, you could see even better views.
• 11:27
  Speaker A: It's very nicely updated. It doesn't really need much of anything. I think it's ready to go. Unless there's something we can't see.
• 11:33
  Speaker B: No, I mean, I've walked through it several times. It really is. If the sun. If the issue with the. The trip hazard isn't really an issue, I wouldn't care.
• 11:42
  Speaker A: I mean, again, talk to your lawyer and your insurance company, but that's not something I would be worried about. What's the. What's the price history on it?
• 11:52
  Speaker B: So they did get a good deal on it. I didn't think about pulling up the
• 11:56
  Speaker A: histories here on the Zillow. Just go back to the. Yep. Back to listing and then scroll down to. I mean, obviously it's Zillow. It's not going to be, you know, super reliable, but it'll be there somewhere.
• 12:12
  Speaker B: There you go. Oh, okay. So, yeah, they closed recently on it, too, and they've been trying to sell this for a while. Let's see. Sold. Yeah, because they bought it for 1.485 just one year ago. Yeah, a little over a year ago. That's right.
• 12:29
  Speaker A: Go down. So what's the. What, what does it have a. Oh, that's it. That's all we can see. Okay. So they're. They're looking to break even. Basically, they've had it for one year, which just. I mean, if you're only going to own a property for one year, there's a pretty good chance you're not going
• 12:45
  Speaker B: to make any money.
• 12:45
  Speaker A: You know, it's just not. You got to plan to hold stuff longer than that, especially in this market. But I guess the prop. Maybe you could assume that what they're asking is kind of where they're stuck because they're not interested in losing money. But you never know. You can't speculate. This stuff. Do you know if it's. If it's a. If it's currently a rental?
• 13:08
  Speaker B: They. Are they. From what they told me, they're not happy with their rental management company, which is a very common story. But they. So I, he did mention the numbers. I'd have to look them up, but I think they're only doing like 100k or so. Which 4 or 5 bedroom gulf front is Terror is not. It's not good. That's not good for them.
• 13:28
  Speaker A: Right. The reason I ask is because if they're renting it, you know, it's probably like somewhat. Even with a horrible rental situation, it's probably somewhat, you know, sustaining itself and in some capacity to the point where they may not be willing to really take much of a loss on the sale. But again, we're just making all this crap up. You don't know what's going to happen until you make an offer.
• 13:49
  Speaker B: Right. So. And I do think there is some more motivation on this one than you think, because I've had a lot of conversations. The agents. I do, I do think there is on this particular deal, some of that.
• 14:00
  Speaker A: All right, listen, I never thought I'd own a waterfront myself, but that, that thing is a pretty. I'll give that so far an 8 out of 10 from what, what I've seen here. I don't know that we're. I'm Just not really ranking these things. But that seems to me like it's in the right direction. I don't know what the numbers are. Jonathan, as you know, we're not going to talk numbers as far as like this deal and that deal. That's your job as a buyer, as an investor to decide what's going to work for you and your family. But I like what I'm seeing on that one. I do.
• 14:32
  Speaker B: Awesome. Awesome. Okay. You want me to go to the next one?
• 14:34
  Speaker A: Sure.
• 14:36
  Speaker B: Okay, so this one right here. Okay. So now we're going that to a different price point. Now this one is a duplex in West Beach. So let me. It's got a private pool. It's six bedrooms, three, three bed, three bath on either side. Some people don't like duplexes, but I have had clients that have had three listings on them or they had two. I forgot what they call. They had one master listing for the entire property and then two separate listings which to me the flexibility can yield more revenue just from my, the way I think about it, because it's harder to book a six bedroom in certain times of the year, which you're, you're the management side of things. You know that way better than I do. But from what I've seen, you can book the two individual size when it's not peak much easier than you can book a six bedroom for higher rates too. So I personally like the flexibility of a duplex, but I have had clients that have come in. I've got great contractors here that have been convert these to. I had one that converted a six bedroom to a seven bedroom or it's like a six bedroom with a bunk room and they're, they're doing well. So if you don't like the concept of a duplex, you can make it one giant house if you'd prefer to do that. But anyway, to me, this one does need some cosmetic upgrades. But
• 15:58
  Speaker A: I have a question. The first, the first house, I didn't think about the pool. Do you think that the lack of pool is hurting that one?
• 16:05
  Speaker B: It. So with GoFundMe, I mean you still should be hitting good numbers. Like again, like you said, it's hard to talk about numbers because people just throw out projections on numbers without understanding how it's going to be managed. I think it's very misleading. But from what my clients are hitting with similar properties to that one, even without a pool, it should be way higher than the numbers they're hitting right now. Now with a pool, that will increase it though. Substantially. If you put a heated deck pool in that Gulf front house, then it becomes, you know, I think it would help the sale as well. But yes, it would rent much higher with the pool. So that's one of the top things I would look to do if I bought that house.
• 16:47
  Speaker A: I got you. Okay, go ahead. Sorry. No, wait a minute. Hold on. The duplex. Is this, this is common in the area. Do we see these occasionally or is this a. Is a rare duck?
• 16:56
  Speaker B: No, no, you do see them. Yeah, I would say they're, you know, they're not uncommon here.
• 17:01
  Speaker A: Okay. I know Brooklyn, Brooklyn from our. She works for the short term shop. She has one in Gulf Shores. And she, she says nothing but great things about it. So I just didn't know how common they were.
• 17:15
  Speaker B: They are, yeah. I mean, they're. They're not as common as houses, but you do see them. And then there's certain communities that have a lot of them, like in Fort Morgan and the dunes and things like that. But this one, I mean, this is a. To me, it's kind of rare to see one with the pool at this price point in a second tier. So that's why I think this is a good deal, because this is one. Let me see. I think this, this is it right here. As you can see, you're just one row back from the beach, which. That can be a little misleading, I think. I did look at where the access is on this one and it's not too far, but as you can see, you're one row back from the beach. Second tier, six bedroom, three. Three beds on either side. Now on the interior, which for every, every one of the clients we have, I'll do the beach walk on a video to clearly show you how far the walk is, just so you can, you know, you're not getting caught off guard by anything. And just to go back to that, even though you see this right here is just right across the beach, you can't just jump across the beach typically and go buy one of these houses because that's private, privately owned lots right here. Some people pay these people for deeded access and sometimes some of these have deeded access also. But anyway, that's one thing that I would have to help you uncover there for, for each second tier properties. But anyway, this one right here, the decking, they re. They kept it up fairly well, but it does need some updating, I would say, to get it optimized. I mean, it's not terrible from the last time. It's been a while since I've walked through it. But anyway, I think as it is, it would still hit some pretty good numbers, but if somebody put a little bit into it, then you're looking at a much, much better numbers when optimized.
• 19:05
  Speaker A: I don't see. Yeah, it's. It's definitely not like, you know, $100,000 designer, beautiful level, but it's. I don't see anything that's keeping it hindering its rentability, really. The blue stairs are a bit obnoxious.
• 19:19
  Speaker B: I did see those blue stairs up there.
• 19:22
  Speaker A: The bathrooms are definitely original or, you know, older, but, you know, it's got good flooring. Looks like fresh flooring too. It's. It's not just lvp. It looks like it's fresh lvp. Fresh paint job. You know, the countertops right there, like that vanity, that's. That's just, you know, what we used to call back in the day for mica. Right. You know, it's just cheap, builder grade or whatever, but you can put a new top on there, no problem if you wanted to. Kitchen looks like solid stone. Solid surface of some sort. And, oh, you got a transition strip there with the tile into the kitchen. I would have preferred that they got rid of the tile and did the vinyl all the way across. And it's possible that the tile is underneath that vinyl.
• 20:09
  Speaker B: Right.
• 20:11
  Speaker A: You'd have to see, like, how the transition. Does it go up or down? Not that that matters. Either way, it's just interesting. They did the new railing on the. On the deck, but kept the deck boards and the joists. Probably. You know, you would presume that the deck boards and the. The joists and everything were fine and it just needed new railings and stairs. So, yeah, this. This is what I. Catches my eye when I'm looking at something like this. I don't mind the duplex. I think it's kind of a cool vibe. It's like having a little teeny, tiny hotel.
• 20:45
  Speaker B: Right. Some people don't like the lack of privacy, like sharing a pool. But some people look at it like, hey, if you're renting a condo, there's a ton of people sharing a pool. And this is just two separate groups. So, you know, people are mixed on that. But from the numbers I've seen, if you do a duplex, right, they can definitely get some. Some solid numbers.
• 21:02
  Speaker A: What's price history on this bad boy?
• 21:04
  Speaker B: Let's check it out here.
• 21:12
  Speaker A: Yep, it should be. Keep going. Yep, there we go. All right. So they bought it for.
• 21:19
  Speaker B: Whoa.
• 21:19
  Speaker A: Okay, so this is this is what I would prefer to see, you know, but, you know, I'm sure you've seen this. You see this all day, every day. Just because they paid half of what they're asking or less, that's about right. Right at half, I guess, slightly more. That doesn't mean they're, you know, looking to give it away, you know, so this is not necessarily an indication that they have wiggle room because they have equity. But it does make me feel a little better going in with an offer.
• 21:48
  Speaker B: Right, right. Yeah, yeah, yeah. And I'm sure since then, like the pool and some of the stuff that's been done to it weren't there, which, you know, and it was 10 years ago. But like you said, definitely makes you feel good to know that they. Unless they've taken a refinance, they should have a lot of equity in it.
• 22:05
  Speaker A: But they've come down. Let's see, let's. September of last year, they started 300 grand higher than they are right now. So they're already pretty bummed out, you know, about the market. What are your thoughts? Let me ask you this from a strategy standpoint. The million dollars versus nine, nine, nine, you know, like 999,000. In my brain, I want to see the nine. It makes me feel better. But there is something to be said. If people are searching for a million dollars plus, they wouldn't see the 999, I guess. But where would you. Would you price it? A dollar lower.
• 22:40
  Speaker B: Always, every time. On all my listings. That's how I do it. Yeah. I just think it does look. It's like, even though it isn't a big difference psychologically, I think it does help it look better. Visibly better. But. Yeah, I don't know. That's the ideal.
• 22:56
  Speaker A: We're way in the weeds there. But at me as a buyer, I'm like, if you can just get that $1 lower than the. The seller's brain has a 9 in front of it. And then all of a sudden now we're talking 900 versus a million, you know, because it's still just a nine. You know, it's. I don't know, psychologically, that's where I would prefer to be. But, you know, I do understand. Maybe the listing agent wanted it to show up in million plus searches. And if you put 9, 9, 9, 9, 9th, it wouldn't show up in a million plus. But I don't know how many people are searching, you know, that specific. But who knows? Just. Just an interesting talking point, I suppose.
• 23:34
  Speaker B: Well, your Insight's really good. You bought a lot of properties and you're the kind of buyer, if it matters to you, then I think it's working.
• 23:41
  Speaker A: I want the nine as a buyer, you know, and as a seller too. I want the 9 as a seller. I saw. I don't know if it was. I've got a house going for sale like tomorrow. It's a. Yeah, it is a house. I was thinking it was a duplex,
• 23:56
  Speaker B: but
• 23:59
  Speaker A: what's the number on it? I think we're doing like she, she, she said, I think she said 205. The agent on it, something like that. And I said no, put it at 199. I don't want. It's for. To me it's worth the five grand difference just to have the one in front of it rather than the two in front of it because I feel like I'll get more action and I may even make it up with multiple situation because it's, it's priced right. I think, I think honestly I could probably get closer to 210 on that little house. But I don't like to play around and you know, as you know it's a weird market so I'm definitely looking to get some, some action on it.
• 24:36
  Speaker B: Yeah. And in this market, I do think paying re really close attention to that. You have to pay attention to every detail to move properties right now. So I do. I'm with you on that. It. If you can make the price look even slightly more appealing, I think it increases your chance of selling by. By line.
• 24:53
  Speaker A: Yeah. But now if you're looking at this and you're the buyer, you got to understand, dude's already got. Well, first of all, he's probably got 1.3 in his head from last fall. And for him to get a nine in front of it's going to be pretty painful. Honestly. It may take a couple of tries. You know, if you're interested in a property like this in the, in the 950 range or the 900 range, you might have to throw, you might have to throw 900 at it and then wait a month and throw 950 at it or something, you know. But you never know. You never know. He might be over it or.
• 25:26
  Speaker B: Yeah, and that's what I tell all my buyers. You know, some of them like, hey, I don't want to offend anybody. I'm like, look, if this thing sells for 900k you're going to be upset we didn't make an attempt, you know.
• 25:37
  Speaker A: So yeah, that's yeah, excellent point. Right.
• 25:42
  Speaker B: Okay, so then on to this one. So this is an even lower price point than that one. So this one's in Fort Morgan. Now this, the timing with new construction is always something you have to consider in a beach market like this. Because it with some of these, if you bought them before the summer you'd immediately. I kind of look at it like, okay, you're immediately building up some more reserves or getting some cash flow right off the bat if you're closing before June and July let's say. But new construction has a lot of pros of course, but you do have to wait for it to be completed. So this one might be completed right. You know, at the end of July. Then you're coming into the off season. So I do think timing is something you have to kind of factor in to a degree. But this is a new construction in Fort Morgan is on the B streets we call them, which I love. The B streets close a lot of properties on the B streets and have clients who've achieved a lot of success. So the reason they call it the B streets is pretty simple. You've got Boykin, Buchanan, Bernard and those are the B streets. They just start with a B. But the reason they're pretty cool, they're to the far west in Fort Morgan. They just go the streets go directly to the beach access. Let me see if there's a photo of kind of what the B streets look like. Which this doesn't have a ton of photos to really go off of. You can't really see it here. But this street right here would just go all the way down to this beach access. And even if you're the first or second house from Fort Morgan Road, you're still only a few minute walk to the beach access. So very walkable to the beach even on any part of the street here. Of course the closer you get to the road it is more valuable to have views. You know, I'm not discounting that but I have had clients that are the second row back and third row that have crushed it numbers wise. Now the pet friendly. I know I've mentioned this before but in Fort Morgan to really optimize these beaches are pet friendly and that's the way to do it in Fort Morgan in my opinion. This is a 4:2 and it's priced at 849 gold fortified. So the insurance would be very low for the area which is a big plus. Now what I would do, they do have it permitted to potentially add a pool. So if it Were me and I was coming with a. I think it's not a terrible deal just as it is, but to make it a great deal. And I don't know if they would accept it, but I have spoken to the agent. I do know there's some room to negotiate. I would come in at this price and ask them to put in the pool for that price. Now at that price with the pool for a gold fortified four bedroom new construction with a one year builder warranty, all that good stuff, I think that's a great deal at that point from a rental standpoint. Now of course you start to furnish it and things like that. But that is, that to me would be a very good deal if you can negotiate the pool.
• 28:39
  Speaker A: All right, interesting option. Interesting. All right, what do we got next?
• 28:44
  Speaker B: Okay, so this now jumping down to a much lower price point here because you know, a lot of people get discouraged looking for houses here, you know, because typically under 600k or so just really limited your limits, your options on houses. This one's in Fort Morgan also. And you know, it's not a, it's not a huge house either. It's three bedroom, three bath. It's in this community that's called Heritage Shores over in Port Morgan. And what I like about it, I mean the beach access is just. Let me see if I can get a good picture. It's just a two short little walk to the beach from this most places in this community. But yeah, so short walk to the beach. It is not gold fortified. So insurance would be a little higher. But great price, honestly. I mean these were moving closer to the high sevens. And even they said one point the three bedrooms when the market was incredibly hot. I don't know what this one moved for, but they're. These did get driven up a good bit. You know, it does, it could use a little bit of, of updating. The community has two pools. It's got a tennis court, basketball court, a little clubhouse with some games in it. And, and you know, I think it's a solid deal for the price and they could be even more negotiable.
• 30:14
  Speaker A: Yeah, it's, it's got some grandma stuff going on. It's got some carpet and beiges and seashells and things like that. And yeah, definitely gets a rattan bed there. And it's got, it's got some things but nothing crazy. It's got, you know, the, again the transition between the tile and the vinyl. Yep, right there. Price history.
• 30:41
  Speaker B: Okay, let's check it out.
• 30:47
  Speaker A: And while you're looking that up. I do personally prefer on rentals, a community pool. Now I have a private pool on a rental and it's great. I, I like it. I did actually just replace it this past off season for amount, an amount of money that would make me. That make me gag. But it just needed it. It was an older vinyl liner pool and it was just in, you know, just to the point where it was. It needed to go. So we ripped the whole thing out and put a gun I'd pool. And that was a very expensive situation, but it will make my life better. So. But I will say personally again, I'm not trying to sell anybody on this as a strategy or anything like that, but I do, I love a community pool. You got the whole community chipping in on the pool. And if the pool, I mean if it complete catastrophic failure leak, you know, something horrible, you had to dig the whole thing up again, start over. With a new pool, you're only paying, you know, 1/100th of the of that rather than what I just went through on the one I just did this winter, which was, you know, this is a tremendous amount of money that's hard to swallow. Also liability. You know, there's going to be less liability in a lot of cases for the homeowner on a community pool. Something to consider. Again, I'm not a lawyer. Talk to a lawyer about that. I will say I have purchased two homes in the last year on the beach down here in Florida with community pools in the same community actually. And I like it a lot. It's. It's just one less thing to deal with really. And the guests, you know, you do need to have a better price point, that's for sure. You're not going to be able to rent it for the same amount of money as a private pool. But if you buy it right, and you got the community pool, the guests will be happy because you can rent it, right. You know, that kind of thing. So anyway, let's go take a look here at this fairly appealing price history here at the 2018 purchase for 3:80.
• 32:47
  Speaker B: That's right.
• 32:47
  Speaker A: Yeah.
• 32:48
  Speaker B: I was actually kind of surprised. But you know, 2018 it is kind of before some of these prices went, went skyrocketing a little. So. So yes, that little surprising but not really to see that. But, but yes, these did get bumped up a lot over the, you know, the years after that in 2020, 21, 22. But anyway, yeah, they, it looks like they, they should be pretty negotiable. I do, you know, if I was coming in on an offer, I would try to come in again. You know, you never know what they'll take, but try to get them down to the mid, mid fours or so for just a smoking deal to see if we could, you know, it's not a terrible price as it sits for what's available in this market. But of course now's the time to try to get a better, an even better deal.
• 33:43
  Speaker A: Yeah, I agree. I'd be at 450 on my offer, I think on this. And again, I don't know the numbers. I don't, I'm not, we're not here to talk about rents versus purchase prices and things like that. And inevitably some folks will have questions about that. And we're, we're happy to help you with that@stsplus.com and of course there's plenty of subscriptions out there that will help you with that, like air, DNA and price labs and et cetera. There's tons of them. But I will say 450 was the number in my head here and I think this is my front runner now. I think this is, this if I was to be offering in Gulf Shores today, this is a Luke house. It's. I like smaller properties. Again, this. Is that being said, it depends if it's, if it's for the family to use. Like if we're going to go in a new market and buy a house, then we probably would get something a little bit bigger. Four bedrooms, maybe, maybe five. But in a market where, like where I buy here in 30A, where we live here, so we don't really have a whole lot of personal use interest in the property or we already have other properties for grandma and grandpa to stay in and things like that. Just from a peer to rentals standpoint, I like smaller homes. Right now you asked me in two years maybe I'll like the five, six bedrooms again. But right now I'm shopping for something a little on the smaller side. And this one has the price history that I like. It also has the grandma factor. I like the grandma factor. It means that I can hopefully get a little bit of a better deal because they didn't kill themselves updating it and putting tons of money into it. And you know, again, when you're talking about a house, most of the time you're dealing with people that are not super savvy as far as like real estate. And if they did do a big giant rehab on it, they're emotionally attached not only to the house but to the rehab. They Put all this time and effort and work in with these contractors, trying to get them to show up. And, and they're almost sitting there like, you don't know what we've been through. It's like taking your daughter to a tennis tournament and you're like, like, like she, let's, God forbid maybe she gets smoked that day, you know. And then you're like, you people have no idea how much effort she puts into this and how many private lessons and all that stuff. It's a similar vibe, you know, with a house sometimes. But anyway, I'm weighing the weeds. I like this one. This was moved to the top of my pile.
• 36:05
  Speaker B: Okay, awesome. Yeah, I think it's the south one too.
• 36:08
  Speaker A: Also the, the community pool is a bit, especially two community pools. Big bonus for me personally and I do like Fort Morgan. So this, this would be my front runner for today so far.
• 36:19
  Speaker B: Awesome.
• 36:21
  Speaker A: And I got to stop talking because we're running out of time. Let's go on. What do we got here? Yeah, I got another one.
• 36:26
  Speaker B: Well, I wanted to put a comment here. So here's the thing. I did hear some news. Please talk to Brenna at the mortgage shop. Just, you know, was just kind of breaking to me today that they, Fannie Mae and Freddie Mac may have changed the guidelines on non warrantable condos. I don't have all the info. I'm not going to tell you something I haven't really researched quite yet. But anyway, I would talk to Brenda, see what, how, what that, what you said about that. But that'll be great because typically on condos, part of the downside is you're kind of looking at 25% plus. Whereas on houses you can use second home loans if you're not. If you're trying to come in with a little lower cash out of pocket, things like that. If that is the case, then of course you'd be more open to different types of financing. That might make it a little more appealing. So something to check out. But once I have more info, maybe on the next market update I'll be able to talk all, all about it. But, but anyway, there are a ton of condos, so I had a little trouble with the houses. There's not as much inventory, so I could pick out what I thought were some of the best ones. With condos, there are so many options that we could potentially get great deals to negotiate and it's hard to tell how negotiable they are. But the clients that I've gotten under contract this year on condos have gotten an amazing negotiation. They may have been priced like it. This one's priced at 569. We might could get it for. I mean it's just hard to say until we make an attempt but for a pretty hefty discount off of this. This is one in. In Crystal Shores West. This is just one of their many great condo complexes. Great HOAs. And then there's many to avoid also. But if it's a solid condo complex run by a competent board which is part of our due diligence with condos, which is. I know I've gone over this a bunch but you have to be more diligent with a condo. But I'm here to guide anyone through that process and it's more thorough than a house. But you have to do it in my opinion. But anyway, this is a crystal shortwest solid hoa. There are going to be recurring insurance assessments on every one of these condos. Basically the size of one or two. And this one has a lower one compared to the rest of the market. I think it's. Well, I'll tell anybody any numbers that are interested. I don't want to mislead with if I'm incorrect on it but. But anyway, this has a heated pool, is a two bedroom and there's other units for sale in here. This one kind of has the grandma. The reason I like this one is kind of like Luke. My mind works the same way in that regard. I might there need some updating. So I think we could probably negotiate heavier on this one and get a better deal and you know, so anyway that's kind of why I drifted this one. But you know, some new flooring, new paint, new furnishings. I think this could be a really solid rental unit. And what I look for in a condo that this has, why I chose this one is it's got a heated pool and it's got a nice gulf side pool and the. You have to have a golf side pool in my opinion for any condo here to really make sense of it because you're competing against a ton of condos that have pools. And if you don't have a pool, kids or. And many families are likely going to choose other options that have a pool at the very least. And from what I've seen here. But having the heated pool increases your your season. So during the off season you're much more likely to get higher rentals. And so to me if you could get a heated pool in the complex, that's another big plus and that this has one too there's many complexes that have those, but many that don't. But anyway, so this is one again, you know, could use some updating, but could be negotiable. One. One solid option there.
• 40:28
  Speaker A: High agree. Heated pool is a major bonus. We got an indoor pool here too.
• 40:34
  Speaker B: Yeah, this is indoor heated pool, so it actually kind of goes into the outdoor pool there. So it's pretty cool. And then there's a gym up there that kind of overlooks the Gulf and everything. So a little pool table place right there.
• 40:50
  Speaker A: And I would leave the tile be honest. I like the Florida tile in a condo. It's not the most attractive thing, but it's very functional and easy to clean.
• 41:00
  Speaker B: Yeah, well, on the rental side, y' all listen to Luke more than me because that's who taught me that stuff, so.
• 41:06
  Speaker A: Oh, stop that. Thank you. What do they buy it for?
• 41:12
  Speaker B: Let's check it out. So this one,
• 41:22
  Speaker A: 4, 02 and 18.
• 41:27
  Speaker B: Okay.
• 41:28
  Speaker A: There's some wiggle room, I would say.
• 41:31
  Speaker B: So I know we're. We're running a little short. Another one that I think is a solid option. Sub 5 condo. Now, this is a crystal tower. I've closed a lot of it here for different clients. Another again, there's many condos. I just picked a couple here that I thought were good fits. This is a second tier complex, which I typically don't recommend, except for a couple like this one. And the reason this is a cool second tier complex. For one, it's got this sky bridge, which is the only one in the whole area that has this. To where you don't actually have to cross the street to go to the beach. Well, you technically do cross the street, but you're on the sky bridge. The kids are like, oh, this is cool and stuff that, you know, that's kind of appealing and unique. I'm not saying it's better than being golf rock, but it's the best case scenario for a second tier, I would say. And then the other cool thing is you see this pool over here is on the Gulf side. So even though the complex is right here across the street, you do have a pool at the condo, you've got an indoor pool as well, gym, some good amenities, which are great for this price point for sure. Then on the Gulf side, you've got bathrooms over here, so you don't have to go back to the complex. You've got like a little mini. I guess you'd call that a lazy river. And then a big pool here on the Gulf side, which makes this condo Rent very well. Now this is a kind of unique complex not to get in the weeds too much, but the views you can see look like you have kind of direct Gulf front views if you walk in. But the higher this is a seventh floor unit and it really depends on where you're located in comparison. You know, what stack you're in on, what kind of views you have, which directly impacts the value of what these sell for. I do have some clients that bought some higher levels, typically 10th floor and above in this complex are going to rent a little better because you have better views and you're above these condos right here. But, but anyway, if you're in the right stack like this one looks like it could be, you can still get some pretty good views even on some sub 104 levels. And the ones I've closed all in there have been higher level units and in the high fours like in the four nineties range. And those clients have been very happy with that. But if it was a 10 under a 10 floor, I would personally want it to be lower than this. I don't, you know, somewhere in the 4 70s, 4 80s or so or try to get a 10 floor above unit. And it really depends on what these views look like as I, you know, looking at it, when I would show it. But anyway, this is another solid option. Sub five option. All right.
• 44:10
  Speaker A: It's cute. A little bit cuter than the last condo. Yeah.
• 44:14
  Speaker B: And these are all two bedrooms in this complex too. Okay, and then let's see. So we'll go over the next one. Okay, now I'm on. Those are just some pretty good options that I think are, you know, then there's many good options. Those are some of the better ones. I did want to kind of go over some ones to avoid. We got about ten minutes left, Luke. Or five minutes. Okay, awesome. So one thing I do want to did just want to bring out because some of these you might look at just cruising through Zillow and be like, oh man, that's a great deal. 5 bedroom Gulf Run 1.7 looks like a great house. The views are spectacular. You're pretty much right on top golf. Well that, that is the problem here is there's certain things we have to look for with Gulf front like the ccl, which is a big one. And the crazy part about this is that, you know, I've seen people clients ask about even bees. And this is on the B streets, one of them, the ones I love over here in Fort Morgan. This looks like a great house too. I'M sure the views are spectacular from there. There's one even beyond that that I think is on the market. That's another. Looks like a great deal. They're all south of the ccl, which is too risky for me. I mean anybody can take a risk. You can finance them. They're. You're probably not going to catch it unless your realtor tells you to be honest with you. Because there's. They'll insure them, they'll do everything. But the problem with being completely south of the CCO, these lot, the full lot is south of the CCO. If there's 60% and this is what I've been told, so please verify this on your own too. If it's 60% more or more damage, you may not be able to even rebuild the house. And then if the lot doesn't have a significant portion that's north of the ccl, you can't move the foundation to rebuild a house. So it's, it's too big of a risk for me because if you lose the lot value, value, even if you get something paid by the insurance, it's not gonna, you're gonna come out very poorly in that scenario. So that's something to avoid in my opinion. Unless you're a very high risk taker, you know, and your risk tolerance is way higher than mine, I would say. Okay, so that's good to know. That's one thing there. This one is unique in that. I know we're getting close on time. So something that a lot of people aren't really aware of right now in Fort Morgan. This, this would be a good deal to me. I mean this is a great price. There's no CCL issues or anything with the Gulf run, but it comes straight off of Highway 180. They've. There's a huge easement they just started collecting, collecting payments for on any construction to be done on any properties coming. And I can explain this further. I know I'm rushing through it directly off of Fort Morgan Road or 180. This is something you probably wouldn't catch either. But it is very important to know because these long driveway Gulf front houses off of Fort Morgan Road, you could be looking at a 50, $75,000 easement cost to do. Now it's not going to trigger unless you do some type of, you need a building permit pulled. But if you're planning to do anything like add a pool, anything like that, it would trigger and you'd have to take care of that before they would issue the building Permit. So even though this, this. I'm not saying there isn't a price so you can figure that out, but something to be aware of that a lot of people aren't aware of right now.
• 47:52
  Speaker A: I see.
• 47:53
  Speaker B: So that's. And then another one here. This is a beautiful house. Whoops. Not trying to show that that's a good agent. Not meaning to highlight her listing here. But anyway,
• 48:07
  Speaker A: you click on the photos button there on the. On that video.
• 48:10
  Speaker B: There you go.
• 48:11
  Speaker A: I think should now.
• 48:14
  Speaker B: Awesome. Okay, so this, this is a beautiful house. This is in Somersault in Orange Beach. It's got water frontage here on this little lakes they have throughout the community. Beautiful. I love Somersault houses. This is in Somersault and Orange Beach. You may look at this and be like, dang, for this price and the way this house looks in Orange beach, which is a highly desirable area. This is a home run. And I have had clients that bought here in spite of me giving them all the. The same info I'm giving right now. And they're happy with it because they're using as a second home or whatever it is. But the beach access is not good. And that is such a big thing in this market because you're competing against houses that are walkable to the beach. So this one, you have to drive to paid parking and it's limited on the amount of spots at the paid parking. From what I've seen on the numbers, can you still generate. Okay, numbers for what this is? Sure. But are you going to generate for the same price point? Could you get much better options that are walkable From a pure investment standpoint? Yes. I mean, are you going to get something that looks this nice, that has this lake buy? Probably not for this price point, but from a pure investment rental standpoint on the return. And this is gold fortified low insurance. There's a lot of pros to it, but from pure rentability, this is one that can mislead some people into thinking it's a very good deal.
• 49:38
  Speaker A: Got it. Okay. You said gold fortified a few times. Explain that that's specific to your market and it's some sor of certificate they get that gives better insurance or what. What is that exactly?
• 49:50
  Speaker B: Yeah. So Gold Fortified is the. It's. It's just the. After 2015 and newer, they started coming up with a standard. And not, not everything built after 2015 is gold fortified. They have to opt into that from the beginning. But anyway, if it's built to the gold fortified standard, which has to do with, you know, Many factors on the construction, including the way the roof is screwed, the way the impact glass on the windows, the beams they use, the, you know, the overall construction. If it's gold fortified, you look at significant savings. For instance, you know, I have clients right now which insurance fluctuates, but right now at this current time, I have one client who's in a flood zone X, which is the best flood zone, that's paying less than 3,000 total for insurance, which is the lowest I've seen in this entire market in a very long time. But if that same house was not gold fortified, it would be potentially, you know, six or seven thousand. So you're looking at some pretty significant savings there. Now, that being said, there's some older houses where you can get a fortified roof put on impact glass and bring it to a certain level of fortification so you can get the roof fortified and put on there, bring it to bronze, you can get the impact glass, bring it to silver, but you can never take an older house that wasn't built from the studs up and bring it to gold fortified, full insurance savings unless you take it down the stuns studs and rebuild it to that standard. So gold fortified is very desirable. And you will see that typically reflected in price too, because they are desirable.
• 51:26
  Speaker A: Fantastic. Look at that. Great stuff today, man. How do we find you?
• 51:32
  Speaker B: So you can just reach out to me on Jonathan on my email. Jonathan, the ShortTerShop.com is probably the easiest way. Or sign up with Avery and she'll hook you up with me or any of those options.
• 51:44
  Speaker A: Or reach out to me on Facebook with the Shorttermshop.com. all right, man, we appreciate it and thank you so much. We'll see you on the next one. All right, later.