Seeking Feedback: Luxury Rental Investment Strategy for 4 Bed 2 Bath, Palm Coast FL

[Joshua Middleton]

Hi BiggerPockets Community,

I’m Josh, 26 years old, current project manager and aspiring asset manager diving into a new venture that I’m excited to share. I’ve developed a Comprehensive Investor Report (CIR) for a property in Palm Coast, FL, designed to be transformed into a luxury rental asset while serving as the foundation for a scalable asset management strategy.

Here’s a quick snapshot of the deal:

• Property: Red Birch Lane, Palm Coast, FL
• Current Value: $350,000+
• Mortgage Balance: $165,000
• Current Equity: $185,000
• Investment Required: $177,500 (for luxury upgrades and optimization)
• Projected Monthly Rent: $4,500 with 2% annual increases
• Target ROI: Full 1.5x ROI for investors achieved in 9 years
• Luxury Features: Smart home automation, designer finishes, professional-grade kitchen appliances, and more.

I’ve also structured a capital distribution plan with a waterfall approach:

• 8% Preferred Return for investors.
• Full Return of Capital to investors before profit splits.
• Post-ROI, a 20/80 split (Investor/Management) ensures long-term alignment.