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For every condominium community we serve, we offer a comprehensive ratings system to provide clients with an estimate of whether or not their property will be successful as a rental! On this page, we break down our ratings system, and explain exactly how we rank different condominiums in the Alabama Gulf Coast area.

Here's the Scenario

So, your neighbors were bragging about how their Gulf Front condo is paying for itself, and you're a bit skeptical.

Well, it does happen sometimes! The chance of a condo being a successful rental investment depends on many things.

Factors we Consider:

  • Waterfront Type (if any)
  • Onsite Amenities
  • Rental Rates
  • Age of Property
  • Cleanliness of Grounds
  • Rental Income Index

Rental Income Index

In the list above, the last item, Rental Income Index, is the most important. This is how it's calculated:

Rental Income Index


Projected Rental Income

Sales Price of Condo

Now, Let's Do Some Math

Using the example of your neighbors' condo, we find his Rental Income Index to be 10.1%.

Rental Income Index




Solve for X, and you'll find that the Rental Income Index for this property is... 10.1%!

The Higher, the Better

10.1% is quite healthy. Keep in mind that while some buildings may not be 4 stars, they may be the ones you like the most because of low density or a host of other reasons. Just remember that even these produce a substantial amount of income, helping to offset the expenses.

Looking for the Perfect Investment Property?

If you are interested in purchasing a condo for an investment, then start your search off right by using our “Rental Income Ratings”. Just like in preschool, we award stars to over 150 condos in Gulf Shores, Orange Beach, and Fort Morgan, Alabama.

If you have found a specific unit, and want to know what the numbers look like, we can provide an investment analysis. It will breakdown expenses and provide a good guideline of the bottom line.