First STR purchased back in April 2022

[Brandt Arrigo]

Investment Info:

Condo buy & hold investment in Cape Canaveral.

Purchase price: $255,000
Cash invested: $90,000

2/2 condo 1 block from the beach with pool.

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

The location, pool, and the Peacocks constantly in the area. Most importantly was the cash flow!

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

MLS, I attempted to purchase the home at full asking but the sellers realtor really wanted to hold an open house. So I had to wait patiently and ended up getting the property after going 10k over asking.

How did you finance this deal?

Lender required 30% down because the HOA did not have enough reserves. Otherwise it would have been 25% down.

How did you add value to the deal?

Removed the popcorn ceilings, textured ceiling, all new paint, and baseboards. I also ended up replacing toilet's, vanity's, fixtures, receptacles, and then had to fully furnish the property.

What was the outcome?

Property has been producing positive cash flow and we are almost completely booked until May.

Lessons learned? Challenges?

Don't buy a property from a do-it-yourself person. I ended repairing and replacing a lot of spotty work. Doing this the first time, everything was a challenge, so relying on friends, family, YouTube, and bigger pockets really helped!

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

I am now a real estate agent, so I would be more than happy to help navigate this journey. Along the way I have picked up some good contacts!

[Brandt Arrigo]

@V.G Jason My wife and I do self-manage and she also does the cleanings which is a huge money saver. Since I purchased back in April, the former HOA did not really exist, hence the low reserves. I have joined the board along with a few other new STR owners and reserves are on track to be 20% of our annual budget next year. There is always some level of risk involved, my attempt to minimize risk was by joining the board to have some say on what happens around the place. My back up plan if the STR doesn't maintain, then to roll the unit into a mid-term rental.