A Practical Investment In Fun

As a CPA and a finance executive, I was trained to look at net income, cash flow, return on investment (ROI), cap rate and other quantifiable measures when evaluating a potential investment in real estate.This is necessary but not necessarily fun. It is simply number crunching with very little emotion. The necessary and relevant questions are:

  • What is the historical rental income?
  • What are occupancy rates?
  • What is the potential future rental income?
  • What are the taxes and insurance, maintenance and HOA fees?
  • What is the mortgage payment?
  • Can the rental income from the property cover the operating expenses and mortgage payment?
  • When the property is sold, how much will it have appreciated?
  • How much gain will be realized?
  • What are the tax implications?
  • Is this a PRACTICAL investment?

Amidst all the number crunching, I looked forward to our annual escape to South Padre Island with our best friends. I always loved to come to the island, and I always hated to leave. Eventually my husband and I decided to purchase a condo and combine the place we enjoyed the most with a practical investment.

We made our “practical investment in fun”. In evaluating an investment from this different point of view, there is a whole new set of questions:

  • Do you like the property?
  • Can you picture yourself sitting on the balcony watching the Gulf, taking in the sunrise each morning…or watching the sunset over the bay each evening?
  • Will you enjoy a walk on the beach within steps of our front door?
  • Will you enjoy being able to jump in a car or on a plane without having to even carry on a bag because your owner’s closet has all you need?
  • Will you treasure special moments with family and friends when they stay at your “Beach Home”?
  • How much will you gain by being able to escape the usual more often to go to a place that you love?
  • Is this a FUN investment?

The answers to these questions are always easy.

So, after 30 years in the big city business world, I landed (intentionally) on South Padre Island with a real estate license. Now it is my job to help others make practical investments in fun. The same property can meet both needs. Whichever approach you use to evaluate your investment, there are properties that fit. And I stand ready to help you evaluate your South Padre Island real estate investment from either point of view….or both!

Looking for a practical investment in fun? Call Eleana Jones.

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