Ocean City, MD - STR investment

[Jeramey Rogers]

Hello - I'm looking to start my short term rental business and am considering buying a property in Ocean City MD. It's a 2 bed 2 bath condo, beach front in midtown. In doing some 3rd Party research through sites like airdna, I am seeing that similar condos have GRI of around 60k which would put my CoC at around 25%. The issue is the building has a special assessment on it where 25k is paid this year (by the seller) and another 25k will need to be paid in the near future tbd (by the buyer). This will put more value on the condo im sure as I am getting it under market value. My question are 1. Is this kind of return obtainable with str in Ocean city md and 2. Would love to hear some expert opinions on this investment. Thanks in advanced

[Jason Charlton]

Jeramey,

I would need to know more about the condo itself, which building / street location etc. Is it Ocean side or Bayside etc.

I have been an operator in Ocean City MD for awhile and have units ranging from 2 bed 1 bath to 6 bed 3 bath. 60k GRI is achievable on some units, typically on the larger side, in the 3 bed 2 bath range. That GRI does include income for cleaning, taxes etc. though normally, which is really pass through expenses for the most part.

Happy to help more if you like, send me a message and we can connect on the details of the condo you are looking at. The special assessment seems high in general, so which building it is would help provide some insight into why and what you gain from it etc.

Jason