Buy and Hold in Naples Florida

[Caleb Chaney]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $530,000
Cash invested: $77,000

3 Bedroom 2 Bathroom stilt home on 2.75 Acres with two pools.

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

This property had a 3/2 unpermitted home built in a permitted shop on the back of the property. This structure was given no value in appraisal so many buyers backed out. I could see clear value in removing the interior and turning the house back in to a shop.

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

Found it on the mls and negotiated through my realtor.

How did you finance this deal?

Used a conventional loan with 10% down.

How did you add value to the deal?

Removing the interior structure out of the shop made it a very usable to a tenant who needed both a house and a shop to work out of.

What was the outcome?

Currently worth around 750K and cash flowing 2k a month as a long term rental.

Lessons learned? Challenges?

One lesson we learned on this deal was that having multiple pools for one property is really just more work than its worth. We still have two but will probably cover one of them because its just more work to maintain.
A big challenge we dealt with was buying in a hot market meant that we got instant equity and good cash flow but getting good contractors to service the home is difficult.

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

My Realtor was Emily Newlon. She is based in Naples and she made the whole process great.