Vacation Rental: Buy - Hold - Exit

[Roger Perez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $432,000
Cash invested: $140,000
Sale price: $865,000

Bought property with a conventional loan. 15% down. Used property as a vacation rental for about 3 years. Exited this month at the highest sale price in the market.

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

The Short term rental industry was very appealing to me at the time.

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

This deal was found through a realtor.

How did you finance this deal?

It was a conventional loan.

How did you add value to the deal?

I renovated the entire property

What was the outcome?

Created residual income for many years after expenses were paid. Now, I've exited and sold at the highest price in the market.

Lessons learned? Challenges?

Make sure you do your research prior to investing on a short term rental property. I had difficulties with the city and bring the property up to code in order to be licensed as a vacation rental property.

Another challenge was renovating the property. My trusted contractor was busy in another project so I decided not to wait and take recommendations on new contractors. Make sure you go with a trusted contractor that you've personally used or have good references to when starting a full reno.

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

Yes, I worked with many real estate professional and mortgage brokers in the South Florida area.