What Buyers Need To Know Here In The Florida Panhandle
If you’re thinking about buying a home along 30A or in Destin, one of the biggest things you’ll run into pretty fast is the decision between a short term rental friendly community and one that doesn’t allow short term rentals at all. A lot of buyers don’t even realize this is something they need to think about until they get here.
This blog breaks it all down for you. My mom Sabine and I talk through this topic with buyers every week, and it’s one of the most common questions we get on YouTube, in our DMs, and on calls. So here’s everything you need to know as you start planning your move or your second home purchase in our area.
Start With Your Objective
When someone reaches out and they’re unsure which direction to go, the first thing we always ask is simple.
What’s your goal with this property?
Are you looking for a true second home you’ll personally enjoy most of the year?
Or a place you want to visit a few weeks but rent it out the rest of the time?
Or maybe you’re exploring this as a full investment?
Knowing your objective guides every step of the search. Some buyers think they want a second home and end up turning it into a rental. Others think they want a rental and then fall in love with the idea of using the home more often. You really don’t know until you get here and start walking properties, which is why we always help you sort through it.
Pros and Cons of Living in a Short Term Rental Community
There are a lot of benefits to buying in an STR friendly community, but there are also things to think about. Here’s the honest breakdown we give our clients.
Pros
• Strong rental income during peak season
• Access to popular resort style amenities in many STR communities
• Ability to offset ownership costs
• Flexibility to use the home when you want
Cons
• More turnover in your neighborhood
• Lots of guests arriving every week during high season
• Noise, extra cars, towels over balconies, busy pools
• Heavier wear and tear on your home if you choose to rent
• Summer months can feel packed if you plan to live here during that time
And yes, June through August is when rental income is strongest, so if you want to personally enjoy your home during those months, the math can shift.
Communities Along 30A Work Very Differently
Not every neighborhood along 30A and the surrounding area is the same. Some allow STRs everywhere, some only allow them in certain phases, and some don’t allow them at all.
A few examples:
• WaterColor is mostly STR friendly and very rental heavy
• Cypress Breeze has a balanced mix of primary owners and rentals
• Bellamar does not allow STRs at all
Because of that, you’ll see totally different lifestyles, HOA setups, rules, layouts, and environments depending on where you land.
Taxes, Loans, and Investment Considerations
This part catches people off guard, so we always walk buyers through this early.
Property Taxes
• Primary homes here are capped at a 3 percent increase per year
• Second homes and investment properties can increase up to 10 percent
• A quick rule of thumb is the 1 percent rule for estimating taxes. A million dollar home is roughly ten thousand dollars a year in taxes
Loans
Primary homes offer lower interest rates and lower down payments.
Investment loans cost more and require bigger down payments, even though there are some rental based loan programs that help investors qualify based on rental numbers.
If you’re renting your property and plan to sell one day, you can also look at using a 1031 exchange, which you can’t do on a property that was only used as a personal residence.
Helping Buyers Understand the Area
If you’ve never been here or you’ve visited once or twice, picking a neighborhood can be overwhelming. There are a lot of options, a lot of styles, and every community has its own rules.
One thing I make for almost every out of town buyer is a custom neighborhood guide based on budget, lifestyle, and whether they want to rent or not. It includes:
• A full map with every community labeled
• Notes on which neighborhoods allow STRs
• Local amenities and HOA details
• Links to HOA sites
• Homes currently available in those communities
And when you get here in person, we give you a welcome package with maps and resources so you can get familiar with the area fast.
Once you’ve had time to drive around, try a few restaurants, and get a feel for each pocket of 30A and Destin, we meet back up and go deeper into the neighborhoods you liked best. Some communities even have additional fees for new buyers, like many of the St Joe neighborhoods that have a half percent new buyer fee. We always point out things like that so you can make the best decision for your situation.
Understanding Rental Numbers
This is a big one.
Rental projections look great online but aren’t always realistic. We always ask for actuals and help our investors run numbers so they understand cash flow, what to expect season by season, and how different down payments affect everything. There’s a lot to unpack, which is why we’ll probably do a full investor focused podcast soon.
What’s Next
If you have questions about rental rules, neighborhoods, or what might work best for you, reach out anytime. We help buyers with this every day and love getting you up to speed before you even arrive.