Short-term rental in Lakewood Washington on the lake

[Jonathan Van Dyke]

Hello I have a question, my parents are wanting to sell me their lake house that is on the lake and has a dock it is a three bedroom two bath home, they probably will give me about a 10% discount, the home would probably end up costing about a million dollars. I'm pretty sure they will end up doing owner financing with me, it is very important to them that they keep it in the family. This home is located in Lakewood Washington on lake steilacoom in Pierce county.

I have airbnbs in Florida but none in Washington State, I was wondering what you guys thought of this opportunity are airbnb's even legal in Pierce county, for on lake steilacoom? I usually pay anywhere from 3 to 500,000 on my airbnbs and I've never purchased anything this big. 

the difficult part about analyzing this property is there are no comps in the area, so I'm unsure the seasonality or how much I would make I would at least want a 15 to 20% cash on cash return. 

I guess my biggest question is would you guys take the chance on getting a property this expensive with very little comps in the area? Do you think lake steilacoom is a vacation area where I could get a reasonable nightly rate on a lake house property? Would I hit the returns that I am wanting?

thanks for your help!

[Michael Haas]

Sounds like the primary goal is to keep it in the family - if you're getting it with $200k - $300k of instant equity and your goal is to keep it in the family why do you need a massive 15-20% CoC return? At 20% down that would be a lot of cashflow on a million dollar property.

I'd buy it. It won't hit 20% CoC but it might hit 4-10% CoC and you're building a family legacy. Plus, Seller Financing :).

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