Orange Beach, AL / Perdido Key, FL · Short-Term Rental Investment Analysis
Purchase & Financing
Purchase price$400,000
Down payment$80,000
Mortgage interest rate7.5%
HOA per month$900
HOA annual increase2.0%
Rental Income
Weeks rented per year20 weeks
Average weekly rate$1,800
Platform fee (VRBO/Airbnb)20%
Property mgmt fee (optional)0%
Annual rental rate increase2.5%
Annual Operating Expenses
Insurance / year$5,000
Property tax / year$4,000
Maintenance / year$2,500
Utilities / year$2,400
Cleaning & supplies / year$2,000
Expense inflation / year3.0%
Long-Term Growth
Property appreciation / year3.0%
Orange Beach / Perdido Key has historically appreciated 3–5% annually. Gulf-front and amenity properties tend to outperform inland markets over 15–20 year horizons, particularly as coastal inventory tightens.
Year 1 Summary
Year 1 Profit & Loss
Monthly Cash Flow
Your household income is $12,000/month ($4K Social Security + $4K pension + $4K retirement withdrawals). The monthly top-up shown above is your out-of-pocket carrying cost. In good rental months it will be less; in winter off-season it will be more.
Expense Breakdown
Property Value & Equity — 20 Years
Property value
Your equity
Remaining mortgage
Cumulative Cash Flow — 20 Years
Rental Income Assumptions
Non-beachfront townhomes and condos in Perdido Key / Orange Beach with pool and amenity access typically achieve:
Peak season (Jun–Aug), per week$2,200 – $3,200
Shoulder (Apr–May, Sep–Oct), per week$1,400 – $2,000
A restaurant, beach pool, and Gulf access are premium amenities that justify rates 15–25% above comparable inland units. Strong reviews and professional photos on VRBO/Airbnb are the single biggest driver of occupancy.
Insurance Warning ⚠
Coastal Alabama and Florida Panhandle insurance has become expensive and volatile. Budget conservatively:
Get actual insurance quotes before closing — not estimates. Some carriers have left Florida entirely. Set the insurance slider to at least $6,000 for a conservative view.
STR Regulations
Verify before buying:
HOA STR restrictionsAsk for rules in writing
Baldwin County / Escambia County permitsRequired; renew annually
Minimum stay rulesSome require 7-night min
Occupancy taxesVRBO/Airbnb collect for AL/FL
Your Financial Profile
Social Security (monthly)$4,000
Pension (monthly)$4,000
Retirement fund (monthly)$4,000
Total monthly income$12,000
Loveland home value~$500,000
Available down payment$80,000
HELOC capacity (if needed)Up to $200,000
Your income is solid and well-diversified. A monthly shortfall of up to $1,000–1,500 on the beach property is manageable. The key risk is a large one-time expense (major storm damage, HVAC replacement, special HOA assessment) in early years before you’ve built cash reserves.
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