First deal - lots of questions

[Mike DeLuca]

I’d like to apologize in advance for any typos, my phone and I don’t always get along. I’m going to do my best to get all the pertinent details out. I’m in the early stages of looking into vacation rental properties. I found an area that is very unique, an island with no cars, and the real estate is surprisingly affordable. Rental incomes seem high despite that, average seems to be 60-70k a year. I think the lack of vehicular access means there’s a whole chunk of the market that is taken out, which would be the wealthier vacation home types that don’t want to deal with getting on and off the island. That’s the best reason I can come up with anyway. To the point, the first house is currently listed at 399. 5 bedrooms, 2 baths, has pool hot tub and is essentially turn key. The rental incomes for the previous four years are averaging 60k. It was purchased in 2011, repaired, the rented in 2012. First year was about 40 k and last year was 68. I live out of state but my father is a real estate agent in the area down there and my mother is there as well so we have resources. We don’t intend to use this as our own get away until much later down the road. I own an e commerce company and my wife stays home so I figure I could use my expertise and her time, plus my fathers mls capabilities to continue the revenue stream and grow it. The big question for me is financing. I want to put as little down out of pocket as is reasonable but also want to maximize cash flow. I have a mortgage on my primary residence and business is good but I’m not ready to tap into my reserves there to do this. We’re seasonal and I need to keep all of my capital in the business going into our slow season. My credit is excellent and because I’m self so employed I have some extra liberties when it comes to my income. So can anyone point me in the right direction? Besides financing what other things should I be looking into regarding the property itself? I’m sure I’m missing parts of the pictures and I’m hoping you guys can help me put it all together. Thanks for your time and info in advance, this place has been an incredible source of information thus far.

[Mike DeLuca]

Originally posted by @Grant Rothenburger:

@Mike DeLuca Unless you get creative,  you're likely gonna need to have 20% down still, just fyi.

 Thanks Grant. The creative options are what I’m interested in learning about.