Anna Maria Island- Runaway Bay Condo 1801 Gulf Dr N, Bradenton Beach, FL 34217

[Tony Corven]

Hey everyone!

My wife and I are starting our investment journey and have our heart set on Anna Maria Island for our first STR/BRRRR. We fell in love with the island as a family and know it pretty well now. We recently found a condo willing to do owner financing at a 4% interest rate with a purchase price of $500,000. We can put $30k down and refinance in 5 years but the agreed upon terms are payments during the 5 years would be based on a 30 year term. This is obviously an amazing opportunity with interests rates what they are now. We are struggling somewhat with the rental comps. The HOA covers all water, flood and building insurance, internet, bug spraying etc. and it's $1562 a month. We found a management company that is charging 10%. We expect to have holding costs of $15k to get through the off season and the condo is pretty updated so we would only be spending $10k in renovations (updating the bathroom and then finishes in the remaining rooms). Its a 2 bedroom 2 bath with a ton of storage.

According to AirDNA, the rental comps for the area are averaging $49k a year. However, we know of other condos in the same complex that are averaging $80k a year. This is our first investment so we are trying to make sure we are making a good choice. Ideally we would like to cash flow or at bare minimum break even. Has anyone else made a similar investment? Does this sound like a good opportunity? Is there anything we are missing?