An Annapolis boatel & sailing charter business

[Marylin OShea]

Investment Info:

Other other investment.

Purchase price: $100,000
Cash invested: $50,000

Adding a sailboat to my portfolio was an STR strategy at first: it gave me a place to stay while renting out my primary residence. The Annapolis market is high priced, so the boat was my only option. But I am switching gear to run sailing charters instead where the earning potential is greater. I got a great deal during the pandemic since the boat was abroad & I had to get it surveyed sight unseen. Invested in a refit to add A/C, update the refrigeration system, and a few other improvements.

What made you interested in investing in this type of deal?

A boatel is a very unique proposition for an Airbnb property. And now that I have done my research and see the opportunity of a sailing charter business, I am excited to see my new venture thrive - it's called Picture Perfect Sailing.

How did you finance this deal?

Marine lending is hard. Especially for commercial operations. Happy to recommend my marine lender for those of you who may want to pursue this route.

Lessons learned? Challenges?

The liability risk of any STR is real. It's exponentially harder on a boat. Having proper coverage is essential so I didn't hesitate to work with a marine lawyer to establish my charter business (Airbnb on a boat is considered a commercial operation - so the charter setup is necessary if you want to play by the rules. It's hard work!).
Now I have got the option to use the boat as Boatel in shoulder season (Spring/Fall) and run sailing charters during high season.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My yacht broker Amanda Haley is a keeper! And as mentioned above my lender was top-notch, LaVictoire Finance. Finally, securing insurance was tricky, and happy to recommend my contact - Brian Rasmussen.