Why We Love Downtown Ocean City, MD Real Estate (& You Should Too!)
For many buyers exploring and researching the entire market is common. It’s a great idea to explore different locations. You may not know just yet where you want to be. That’s okay! You’re not the only one.
Downtown Ocean City, MD Real Estate has lots of possibilities. Is it the right option for you? Maybe… But, what opportunities are available? How can my real estate investment benefit from it?
In this blog article, I’ll share some amazing benefits of owning real estate in Downtown Ocean City and why we love the incentives, grants, support, and vacation rental income potential.
Real Estate Investing in the Opportunity Zone in Ocean City, MD
Let’s look at a common question… Is Ocean City, MD a good investment? The quick reader’s digest answer is yes. However, just like any investment, you need to have a well thought out purchase plan. Investing in the Opportunity Zone in Ocean City, MD may add value to your plan.
What’s the Opportunity Zone, explained quickly?
Opportunity zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017, which allows tax incentives for investors to buy in economically challenged areas.
Each U.S. State selects census tracks that meet U.S. Treasury’s guidelines. They, submit the selected areas for federal government review and approval. Once approved, the state has eligible Opportunity Zones.
The State of Maryland as 147 Opportunity Zones, and the Opportunity Zone in Ocean City, MD happens to be from the 33rd Street area south to the inlet, which is Downtown Ocean City. There are 18 States that have eligible zones.
You don’t have to be some savvy investor to benefit!
It’s not difficult to incorporate an Opportunity Zone purchase into your purchase plan. You don’t have to be some hedge fund investor or have lots of money to invest. First time vacation rental buyers can benefit just as easily. Now, you should always consult with your tax adviser, because there are some important planning aspects to make it work!
Opportunity Zone benefits explained in a nutshell…
The Opportunity Zone creates some major tax incentives that could be a better alternative than participating in a Like-Kind 1031 exchange. You can learn more about 1031 like-kind exchanges in my blog.
With potential for reduced capital gain liability with both commercial real estate and residential real estate Downtown Ocean City, you take it into consideration.
It’s not difficult to incorporate an opportunity zone fund to benefit. If you’re considering this, it’s smart to start outlining a plan of action even if you’re months out.
Non-Profit Grants, Incentives & Support from Ocean City Development Corporation
The Ocean City Development Corporation, or OCDC for short, is a 503c non profit organization that focuses on economic development in the downtown area, with a primary focus from 16th Street to the inlet.
If you’re buying real estate in Ocean City, MD from 16th to the inlet, your property could be eligible for OCDC’s façade and/or green incentive grants. These grants can help cover some of the cost for face lifting:
- Condo buildings
- Townhouse buildings
- Single family homes
- Hotels and motels
- Commercial space
Not all properties are eligible, but the opportunity is there. The staff at OCDC is great and willing to help you evaluate projects to determine eligibility and your options.
Combining the façade grant and green incentive grant can be the best way to maximize the amount contributed to your project. By combining both grants for eligible projects, you could get up to $10,000 or 1/3 of your project cost covered (whichever is less). The façade grant alone could give you up to $7,500 or 1/3 of your project cost covered (whichever is less).
Vacation Rentals in Downtown Ocean City can have awesome potential for great vacation experiences
There’s really something for everyone in Downtown Ocean City. If you’re considering owning a vacation rental, the downtown area can offer great experiences for guests.
Todays vacation rental market is changing. Now, more than ever, Vacation rentals have turned into a more affordable alternative compared to a hotel, and more potential income opportunities for owners if you’re giving your guests a vacation experience.
Guests enjoy being able to walk to attractions. Whether you’re bayside or Oceanside in the Downtown area, you have the ability to offer great rental properties that have walkability benefits guests, which in return can benefit the owner through their rental income.
Being downtown means you’re mostly a short walk to the boardwalk, which is a popular attraction. From almost every location, you and your guests can walk within 5 blocks in either direction to many local favorites such as:
- Coffee Spots
- Wifi Hotspots
- Bay and Ocean
- Beach and Boardwalk
Focusing on properties that are an easy walk to area favorites can help you secure better nightly rates and guest experiences.
Ocean City, MD Real Estate on the Boardwalk has lots of vacation rental income potential
Other than being on the famous Ocean City boardwalk, you have great potential to maximize your vacation rental income with the right investment.
Well-staged and maintained properties on the boardwalk have the potential to compete with Boardwalk Hotels that charge $400-$600 a night for one hotel room in peak season. As an alternative for your vacation rental guests, you can offer them a hotel like stay with more space and features.
Bedrooms provide separate living space and privacy. Well-equipped kitchens have the advantage of saving your guests money by giving them the ability to buy groceries. The alternative is going out to eat which adds to their vacation expense. Groups can contribute to the total cost of the property turning a single hotel room for $500 a night into two guests splitting a 2-bedroom condo for $400 or more a night.
There’s potential to earn $1,000+ a night with Boardwalk vacation rentals in Ocean City, MD. There’s options for $200,000 to over $1 million and your purchase can generate rewarding passive income.
It’s Primetime for Commercial Real Estate in Ocean City, MD
Commercial real estate in Ocean City, MD has many property types, and there's some great opportunities available such as:
- Hotels and Motels, some even beachfront
- Multi-Family Properties
- Mixed Use Property
- Lots for Development
- Office Space
With Downtown being an approved opportunity zone and resources available at OCDC, investors and developers can benefit.
Easily search Commercial Real Estate in Ocean City, MD. Find office buildings, multi family properties, hotels for sale in Ocean City, MD and more.
OCDC’s support in Downtown Ocean City can have perks.
OCDC has helped developers get grant funds to support economic growth in the Downtown area.
For example, a few years ago when a developer wanted to redevelop the Oceanfront Hotel Site, The Royalton Hotel on 11th St and the Boardwalk. OCDC helped them secure a $200,000 grant to demolish the Oceanfront hotel, which was replaced with the new Monte Carlo Hotel Oceanfront. This provided a more value real estate asset to the area.
The support of local organizations like OCDC is an awesome aspect for real estate investing. If you’re thinking of starting a business in Ocean City, MD, you may be eligible for a business grant to help you get started.
There are a lot of options for buying Ocean City, MD Real Estate from Downtown to North Ocean City and Oceanside to Bayside, finding the right property for your next real estate deal is there. You just need the right plan in place.
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