Been looking at a few slips for sale on our local lake (Lake Travis). What are the pro and cons to owning a slip and renting it out?
Maint, security and water are included in the $300 monthly fee. On paper, it would pay for itself in 8 years or so..

300 a month is 3600 a year. not many slips cost much more than that to rent. maint security and water would be included in all slip rents too. how much can you get for the slip if you want to go somewhere else? 3600 plus the note on the 15 to 75k slip mortgage?

These slips lease for 600-800/mo but of course you do have to keep it occupied.
30k / 300 = 8.3 yrs
I'm more interested in uncovering any hidden costs/pitfalls I'm not anticipating.
What factors would effect the future value of the slip? I assume that supply/demand would be the main factor.
In my favor, building new is a major hassle/expense here due to ecological interest however a tanking economy could work against me.

Albeit I am in a different location (Sandusky Bay, Ohio ) I believe my Covered Boatwell was a solid Investment.
My experience was that the Purchase over Rent payback only worked during the economic downturn when the property values (and the rents) were low.
I was active in the market for a number of years prior to the purchase.

With the economic upturn (~ 5 years later) my Taxes have increased as well as the neighboring rent values.

The condition of the structure is important factor. Specifically the pilings. In this area new pilings\bulhead are a significant expense.
I would understand the condition of the Pilings\Bulkhead and the anticipated life span\maintenance before placing a value on the purchase.
Dan

My situation was we purchased a 50 ft boat in Ft Lauderdale. I found very few slips for rent that size and most were behind someones house and tide/depth was a big issue and they were 1000 plus a month. I found a marina that wanted 2200 a month rent. So I started looking around for a slip to buy. Found one at a condo marina that was priced at 125000 and about 300 a month fees. I asked what they rented for and was told about 1100 a month. I said great I will rent one. But none were for rent. They told me they STAY rented for years at a time. So back to the slip that was for sale. It belonged to a nice lady that her husband had passed and she had sold the boat. I took a chance and offered 100000 and me to pay all closing costs. She accepted . So far I couldn't be happier. Very protected marina. All floating docks. The slip came with a parking spot and use of condo pool. Any other place that had slips available and had those amenities was 2200 plus a month. I don't think this would be a good investment for someone looking to own it for a year or 2 but for long term, it seems to work.

Chris

The math sounds good- who is responsible for maintaining dock structure and any common area property. As in could you be hit with an assessment to redo docks, parking lot, or whatever? Must be some risk other than rising property tax and insurance or more folks would purchase for the monthly savings. Interesting...

Is there a DRBO (think VRBO) site to promote slips or racks for rent by private owner? I like my Hi/Dry facility but also like the idea of skipping the marina crowds. Could help keep OPs dock rented when he doesn't need it.

The biggest risk on Lake Travis is going to be the water level.......If the lake drops to severe drought conditions then that slip won't generate any revenue. I remember the water level issues being mentioned on here a couple years back and some posted pics of ramps that ended 50-100 ft from the water!

In S. Florida "dockominiums/rackominimums" were all the rage 10-12 years ago. The glitch was the rents could rarely cover the costs if you didn't utilize the spot yourself. Some early investors made a killing, the later investors got buried. A perfect example was "the Port" in Fort Lauderdale. It was a category 4 storm proof building very close to the inlet, had a high tech loading system (computer controlled crane vs. conventional forklifts). Early buyers scored, then some folks got stuck with 200K slips that rent for $1000 month: 1801 Se 17th St, Fort Lauderdale, FL 33316 - Land For Sale and Real Estate Listing - realtor.comŽ

The rack listed above sold new for 68K, resold in 2013 for 80K (first buyer made nothing after taxes ($1800 yr, maintenance/HOA and real estate transaction costs). At 80K/1000 month rent means the current owner will have to rent 10+ years to get his money back (remember taxes alone are $1800, plus HOA fee). This is an awesome building in the best location in Ft Lauderdale but I wouldn't call it a home run investment as a rental......as owner user, it is a great place to store your boat!

I have just recently been through this thought process. When I first got a slip on Lake Travis, I thought buying one sounds crazy. Now after paying big money for at least five years to a marina that started treating its members like crap after the water level came up (they easily forget who kept them in business), it doesn't seem so crazy. If you're committed to the slip and lake lifestyle, I think it makes sense. I'd way rather have had all that money been equity in a slip than evaporating in to the air.

You need to make sure you use it a lot otherwise just stay on the trailer.

I've heard the management at that marina are crazy strict. Maybe it is good maybe it is bad. Probably a matter of perspective. I'd ask for opinions of neighbors there.

Lots of good replies, thx!
These slips are floating, so no pilings to worry about.
The "maint" fee covers dock and common area maint, security, insurance and property taxes. Not sure how the elec gets paid.
This particular marina is positioned well for low water levels and they have a ramp that's usable down to at least 620' msl (Full is 681' msl).
The slip I'm looking at has twin 30 amp elec connections. Is this common for a cruiser sized slip or considered an upgrade?
What other amenities should I be looking for to judge what I could charge to rent it out?? Pump out? City water tap? What else?
All my boats have lived on trailers so I'm a bit green in this area.

On the 30 amp that's a pretty good setup. On my travel trailer a 30 amp is plenty to run the AC and the fridge plus a few other things. Having two of them, even better.

Maybe I missed it, what size is the slip? Yes, pump out, water, cable TV would be nice.