STR Panama City Beach FL

[Daniel Denning]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $700,000
Cash invested: $150,000

Estimating conservatively to do $12,000 cash flow in year 1. Bought well below asking price but got it at 7.5% rate. Will refinance after 6 months and begin to cash flow a lot more as rates go back down over time. The property did $118,000 gross revenue last year, and we project that we can increase that after we make some improvements. We are working with a designer.

Doing a Cost Segregation Analysis and utilizing 100% Bonus Depreciation. Current estimate is a $56,000 after tax bonus.

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

We were looking for a higher value beach house that wouldn't have HOA fees. We really wanted to take advantage of Bonus Depreciation through a Cost Segregation Study, so that's how we got to our price point. We have experience managing our own and other people's STRs, so we know we can make this perform well over time.

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

Working with a local agent.

How did you finance this deal?

Went through the Short Term Shop. Put 15% down as an investment loan.

How did you add value to the deal?

New furnishings, paint, light fixtures, mural, cleaned up outdoor space, etc.

What was the outcome?

Will begin taking rentals January 2023.

Lessons learned? Challenges?

Will learn plenty along the way.