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Updated about 2 years ago,
Panama City Beach - Short Term Rental
Investment Info:
Single-family residence buy & hold investment in Panama City Beach.
Purchase price: $770,000
Cash invested: $138,500
This is a 5 Bedroom, 3 Bath SFH home - Just 3 blocks from the beach. The home had been recently remodeled and had rental data over $115,000 for the previous year. It is a 2 story home with separate entrances to both floors as well as fully equipped kitchens/ living rooms on each floor. With the potential to rent it out to large groups or families in the summer, then split the unit into two in the off season for longer term stays.
What made you interested in investing in this type of deal?
This was a Day 1 Cash flowing deal. We also had the potential for value-add & additional income.
How did you find this deal and how did you negotiate it?
This was an off market deal, that we spoke with the seller directly on.
There weren't much negotiations. We offered the seller a number, he accepted it.
How did you finance this deal?
This was financed with a 15% down second home loan.
How did you add value to the deal?
The home has an empty garage as well as an empty storage room. In the off-season we will be closing both of these in. The storage unit will become another bathroom, while the garage because another bedroom.
What was the outcome?
The outcome should be - Higher value of the home, due to more heated/cooled square footage. But also, increased rental income due to more bedrooms!
Lessons learned? Challenges?
Buying Mid-Summer can be difficult. But if possible, it is best to take over any rental income there is currently, then get/manage your own after the high season ends.
Our biggest challenge was making sure all systems, tools, and processes were 100% ready the day of closing, due to having bookings that same day and for the 45 days following it.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Shameless Plug - As an Agent/ Investor in the area, I was able to represent myself.
