Converting My Marina del Rey Primary Residence into a Lucrative Midterm Rental

[Taylor Burback]

Investment Info:

Condo buy & hold investment.

Purchase price: $1,300,000
Cash invested: $143,000

I acquired a stunning 2,000sqft 2bd/2ba condo with 17ft ceilings in Marina deI Rey by investing $143,000 (down payment and closing costs) for the property, securing a favorable 3.1% interest rate. Upgrading the condo with modern features and amenities, I've transformed it into an exceptional living space.

My goal is to tap into the thriving mid-term rental market in Marina del Rey. Offering fully furnished accommodations, I anticipate rental rates between $8,000 and $10,000 per month, presenting an attractive income potential.

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

First and foremost, I recognized that Marina del Rey offers excellent potential for growth and value appreciation. While neighboring neighborhoods like Venice, Santa Monica, and Playa Vista have experienced significant price increases, Marina del Rey has remained relatively undervalued. This presented an opportunity to invest.

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

Zillow.

How did you finance this deal?

I initially purchased the Marina del Rey condo with a 10% down payment on a 4% Jumbo loan, supplemented with a $130,000 7/1 ARM to avoid PMI. However, during COVID, I took advantage of low interest rates and refinanced to a 30-year fixed mortgage at 3.1%. This allowed me to meet the 20% down payment requirement, remove the ARM, and secure long-term stability while maximizing equity.

How did you add value to the deal?

Remolded the bathroom, kitchen, and landscaping, and I intend to convert the dining room into a 3rd bedroom.