Vacation Rental Investment Near Mila Kunis & Ashton Kutcher Wedding Venue

[Alex Blackwood]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $935,000
Cash invested: $300,000

This is one of the most beautiful hilltop mountain view homes in the area. High ceilings, large floor-to-ceiling windows, and imported custom woodwork. This property boasts some of the best unobstructed views in the area on a private road with only four homes on the block. Just off the main road and down the street from all the regional parks, apple orchards, and minutes to all the shopping and dining on Yucaipa Blvd. This mountain-style home has all brand-new windows and large sliders that open to private decks and main-floor decks. The offering boasts two primary suites with private balconies and their own ensuite bathrooms – one with a spa-jetted tub with views. The home has three levels. The grand living room has 20-foot ceilings with rustic wood beams, a catwalk that spans across the space and a grand stone fireplace which opens up to the den with a built-in bar, a guest bathroom one on end, dining room, spacious country kitchen, main entry, mud room and another guest bathroom on the other wing of the home. The second-level catwalk separates the two primary suites. Up the open stairs you will be greeted with a nice landing lounge that features another full bathroom, a very well-appointed laundry room, two more bedrooms and another family lounge / office / workout room. So many additions to list: solar, large driveway, large drive-through garage (opens in front and back), RV parking, boat parking, a sand volleyball court, decks, and a large jacuzzi overlooking the hills. No HOA and no special assessments.

Property: https://invest.mogul.ooo/property-profile/642ab8ce7d23be07037aa098

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

Yield – Operating this property as a short-term rental, outsized rents and strong demand in the submarket lead to net operating income yield of over 10% on all-in cost day one, further bolstered for equity invested due to accretive leverage. Nearby comps average between $190k - $280k per year or $16k - $24k per month, with occupancy above 66% across the comp set

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

Targeting this property and negotiating with the Seller, a competitive price at $935k was accepted, coming in 4% under listing price and achieving buyer value day 1. The property is unique given it is the largest and most updated property within a 5-mile radius, and also boasts several amenities including its very own sand volleyball court and a hot tub

How did you finance this deal?

We financed 75% LTV

How did you add value to the deal?

After conferring with multiple property managers and local comps, with professional management and some upgraded furnishings the Average Daily Rate (ADR) could be pushed above $700. The property will take a month to ramp up bookings, and with a growing track record, the property will benefit from repeat customers in the long run.

What was the outcome?

We are currently raising equity for co-investment opportunity in the property at https://invest.mogul.ooo