STR Oceanfront Condo Deal

[Daniel Denning]

Investment Info:

Condo buy & hold investment in Myrtle Beach.

Purchase price: $213,500
Cash invested: $86,000
Sale price: $451,000

It's a vacation rental, so it's hard to say what the monthly cashflow is right now. I'm projecting to make an average of $1,000/month during COVID.

Ended up doing way better. Gross revenue was $78,000/year and we sold at height of market to invest in a beach house.

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

It was our first real estate investment. We looked for a property that had a great view (21st floor oceanfront condo) that needed work inside. We did a rehab and it did really well.

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

Local real estate agent, Ann Wilson.

How did you finance this deal?

10/1 ARM @ 4.75% (March 2020)
Did cash-out refinance November 2020 and pulled out $25,000 cash and locked in 30-year fixed @ 2.75%.

How did you add value to the deal?

We rehabbed the inside. New flooring and furnishing, paint, scraped ceiling, etc.

What was the outcome?

Sold for $237,500 more than purchase price 2 years later.

Lessons learned? Challenges?

You make the most money on STRs learning to manage it yourself. Can be headaches and take time. Otherwise, finding people to manage that will really value your property is next best route.

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

Ann Wilson (Agent)