STR/MTR oceanfront condo on Florida's Surf Coast

[Christine Goodwin]

Investment Info:

Condo buy & hold investment.

Purchase price: $220,000
Cash invested: $32,000

Oceanfront condo in an STR friendly building purchased for income producing vacation or mid term rental. Rent fully furnished with utilities. Minimum stay 5 days.

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

Enjoy the beach, and this was a great price for a unit that only needed cosmetic work. Most other owners are investors so HOA is very vacation guest friendly.

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

Found realtor on Zillow looking for a condo in Daytona Beach. She showed me this one after hearing my needs.

How did you finance this deal?

Hard money interest-only 5 year ARM, 25% down off appraised value.

Lessons learned? Challenges?

Research local market more completely for saturation. Also discover competitive rates. A challenge I face is that other owners in the same building have lower or no carrying costs - some own their units free and clear or this is not their business - so their monthly and seasonal rates are significantly lower than market, which hurts newer investors who are asking fair value.

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

Jordan Boudin of RealtyPros in New Smyrna Beach, FL