Short Term Rental Condo on the Oregon Coast

[Tracy Ross]

Investment Info:

Condo buy & hold investment.

Purchase price: $365,000
Cash invested: $30,000

Short Term rental condo on the Oregon Coast. Has had 95% Occupancy since purchase. Staged with light remodeling.

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

Finding rentals on the Oregon Coast can be hard. Oregon has a lot of STR rental restrictions in a lot of counties. I became interested in picking something up here because this is where I like to vacation. The coast can be a beautiful place year round, and Lincoln City, Oregon has one of the best and longest beaches in the state. I liked this property specifically because it offers more than just the condo. It has a pool, game room, laundry and it's close to the casino and downtown.

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

I had a local real estate agent and I called the listing agent on every property to find out if they knew about any short term rental restrictions for each place. This also worked to my benefit because I developed a relationship with the listing agent on this property that came in handy when we had problems with the financing due to condo insurance issues.

How did you finance this deal?

I financed this deal using a HELOC on my primary and purchasing this as a second home with 10% down instead of 20. I am hoping to do a refinance to cash out and leverage this property to purchase the next one. This property has cash flowed $2000/month during the summer and I'm estimating $1000/month for the year, so I have room to leverage this place for another one.

How did you add value to the deal?

Many homes and condos on the Oregon Coast are very dated. I only had to do some up to date staging and light remodeling of this condo to get it rent ready.

What was the outcome?

Great cash flow investment for the long term. Potential appreciation to cash out refinance this for another rental. I would 100% buy another vacation STR on the Oregon Coast

Lessons learned? Challenges?

We have on site property management and I would never try to self manage a coast property. There are a lot of maintenance issues with the salty air and having someone onsite means occupants are always taken care of in a timely manner.

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

Char Brown of At The Beach Real Estate is very knowledgable about coastal properties and Breanne Borgaard of Keller Williams in the Portland area worked as my buyers agent. She also helps a lot of buyers on the coast.