Beach Vacation House

[Dan Cioaca]

Investment Info:

Single-family residence buy & hold investment in East Hampton.

Purchase price: $1,050,000

House hack of sorts. Summer rental destination, so MD-LD are 70% of full-year rent and is cash flow breakeven with 3 month rental. Free use of it off season as a vacation home. Switched to full year rental when Covid created a year-round market and tenant pays utilities, so half of rent is left after the mortgage.

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

On market but poorly advertised, and purchased during winter lull in a beach destination. Received unsolicited all cash offer for 20% more after closing hit the town records.

How did you finance this deal?

Traditional 30 year mortgage.