Investment Info:

Single-family residence buy & hold investment.

Purchase price: $515,000
Cash invested: $100,000
Sale price: $1,095,000

Purchased a SFH vacation rental in the middle of COVID lockdown and while Florida had a ban on all short term rentals, with 5 minute walk to deeded beach access. Sold at the height of the market with highest PSF sold in the neighborhood in August 2022. Invested additional approx $25K over the hold period in replacing HVAC unit, hot water heater, refrigerator, installing LVP throughout and upgrading some of the furniture and decor in the home. Net of approx $530K on the sale after RE commission. Did a 1031 into 4 bedroom oceanfront single family house as a STR in North Topsail Beach, NC.

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

Always wanted a beach house and specifically a vacation rental on 30A where we love to vacation

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

It was on the MLS and no real interest because of COVID lockdowns and short term rental ban at the time in Florida due to COVID

How did you finance this deal?

2nd home financing, 30 year fixed

How did you add value to the deal?

Mostly cosmetic, was original owner since 2006, no upgrades made. Swapped out almost all furniture and all decor, only kept the sofa/loveseat and one bed. Added LVP throughout, replaced HVAC system, hot water heater and refrigerator.

What was the outcome?

Sold at the highest PSF in the neighborhood right before mortgage rates climbed and interest declined.

Lessons learned? Challenges?

Went through two different management companies, neither I was satisfied with. No one will manage your deal like you will. Definitely install exterior cameras so you know what is happening at your STR. Google Nest thermostats are not user friendly for guests. You don't want them to 'learn' any habits in an STR. Do not get sucked into using a Kaba lock, too expensive.

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

I am a licenses agent in NC/SC but highly recommend Kathy Bass as a FL agent in the 30A/Panama City Beach area and her son runs a successful management company too!