1st Investment-Tierra Blanca- Condo- Gulf Shores

[Ramon Romero]

Investment Info:

Condo buy & hold investment.

Purchase price: $330,000
Cash invested: $39,000

Spectacular views await at this completely renovated gulf front unit! Enjoy resort style amenities including but not limited to boardwalk beach access, outdoor/indoor pools, tennis, golf and on site dining. This one bedroom one bath unit at the Gulf Shores Plantation located on the first floor of building number two. This fully renovated unit is equipped with all new stainless steel appliances, new vinyl plank flooring, and hallway bunk beds.

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

It was the official start of our short term rental investment journey. Needed to test the theory and put all knowledge to the test.

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

MLS, Local realtor, & all attempts to negotiate anything failed, the market was too hot. Finally offered asking, lost the deal at one point, then after a few days it fell through and came back to us.

How did you finance this deal?

Heloc took too long and we couldn't delay or risk losing earnest money. Took a loan against 401k and made it happen.

How did you add value to the deal?

Cosmetics, interior design investment paid off, and now outperforms similar listings.

What was the outcome?

A beautiful ocean front condo that cash flows over 15K/year after all costs.

Lessons learned? Challenges?

It was our first time doing this, we had listed the property on Airbnb and started getting bookings before we closed on the property. Then we lost the deal, we held on to the bookings because we thought bookings could be transferred and fortunately we made a stronger offer and their deal fell through. We ended up with the property and honored all bookings. NEVER DOING THAT AGAIN! Apparently we didn't realize that doing that is not the way!

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

The life you live are the lessons you teach others... get out there and shake it up... we thought we overpaid because the market was too hot back in April/May of 2022 but the numbers kept saying it was a greenlight. Thankfully we trusted in the analysis and stuck with it.