First Ever Purchase Summer Rental

[Bobby McNiff]

Hey Everyone, looking for some speedy guidance and advice. I am 24y/o looking to buy first investment property in Massachusetts. I have found a vacant (8 months) home. it is located next to the beach in a desirable summer rental location. 

The owner has agreed on a price of $150k and the home will need about $75k rehab (900 sq ft 2 bed 1 bath) the ARV of this home will be $430k. I know this is a good deal for a flip, but im more interested in buy and hold rental properties. Monthly expenses ($1,900)

the expected rent for June-August 12 weeks ($2200 a week) september-May (1400 a month)

Is a summer rental like this hard to have as an investment property? Ideally fully rented it would cash flow, but Id imagine a 9 month tenant and a 3 moth weekly tenant is not only tough to manage but hard to find? I am considering trying to wholesale it to a flipper but I really want to buy it myself as its my first deal. Just trying to gauge the abnormal tenant situation and its impact on cash flow.

thanks, Bobby

[Santiago Marquez]

This sounds like a really great investment if your numbers are correct. If the area is truly desirable for an AirBNb I'd say keep it as your first buy & hold rental door. Since you make your money on the BUY your ARV once rehab is completed is looking really attractive to want to wholesale to another. One would only think the value of such a place would increase greatly. Although you'd want to be accurate w/your monthly expenses, $1,900-, no surprises. Also take into consideration the cashout refi once appraised from your rehab. You definitely have an interesting investment here.

[Account Closed]

By any chance, is it anywhere near a university? Students may appreciate an abbreviated rental and then you could rent out weekly for the summers.

[Tory Keith]

Hi Bobby, if you do end up deciding to wholesale pre-reno I'd be interested in details. But sounds like a good project to take on yourself!