First investment property

[Nolan Chandler]

Investment Info:

Single-family residence buy & hold investment in Surf City.

Purchase price: $479,900
Cash invested: $12,000

This is a short-term rental through Airbnb. This property was built in 1983 and it is on the second row from the beach. It has a peek-a-boo view of the ocean on the back deck and an unobstructed view of the intracoastal waterway on the front deck.

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

I was initially looking at some commercial properties, but the realtor suggested at least looking at a property that she knew of on the beach as a short-term rental. Although this was not the same property as she initially showed me, I saw a great property at a reasonable price, and heard from many that this is a popular area for short-term rentals.

How did you find this deal and how did you negotiate it?

The realtor found it for us, and we offered simply asking price with credits for some minor repairs. Seller was gracious enough to give those credits in the hot market there at the time.

How did you finance this deal?

I financed this purchase with a bank with a 15% down payment.

How did you add value to the deal?

We repainted the storage unit door, the address numbers on the property, and put in a new wrap around deck.

What was the outcome?

Remodel looks great to us and the few items were relatively easy to repair after closing.

Lessons learned? Challenges?

One of the items on the inspection was that the exterior electrical meter box was worn and rusted. I decided not to address it because I believed that it had no impact on the property and was largely out of sight from anyone entering the property. However, the city came by and did an inspection and notified me that it needed to be repaired or else power would be shut off. It was relatively expensive to replace and I should have included that in the request for sellers credit as well.

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

Yes, I worked with Shelly Wagner and she was very responsive and knowledgeable.