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Updated over 2 years ago on .
Lake House investment in Seasonal Location, PA
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $275,000
Cash invested: $34,000
SFH, 3BD/2BA, 1,350 sqft. This charming house sits on the corner of a 10 acre lake, within a community about 1.5 miles from local ski resort. The back porch overlooks the lake, a park in front, and a floating dock where kids can play during the summer. The house is 5 minutes from winter skiing at one of the best mountains in NEPA. Also close to trails, golf, etc.
What made you interested in investing in this type of deal?
This was viewed as a lifestyle asset that can cover its cost with STR. The best part is it sits on the lake, which greatly enhances its rentability during non-ski seasons. Perfect for 1-2 families for a weekend or full week away from Philly or NYC. The basement is unfinished, so with a bit more investment, it could be 2,700 Sqft, 5BD.3.5BA, or even split level with 3Bd/2BA up top, with 2BD/1.5BA on the bottom. The community is on sewer, and the HOA/Taxes are minimal.
How did you find this deal and how did you negotiate it?
We had friends that had a cabin in the community and we visited. We fell in love with the area and our kids enjoyed it so much being outdoors and making new friends. We happened to be there the weekend the sellers put it on the market. We purchase for 7% below asking with short negotiation.
How did you finance this deal?
Financed as 2nd/vacation home.
How did you add value to the deal?
We have updated some of the fixtures and improved the style/feeling of the inside of the home. We plan to finish the basement at some point when it has returned enough to reinvest. For now, created a personal storage area for personal belongings that stay.
What was the outcome?
TBD
Lessons learned? Challenges?
Really need to have a further plan. We have an extra car, which we plan to keep at the property. The biggest thing for STR is having reliable cleaning crew, everything else is electronic and can be done remote.