Quadplex conversion to vacation rental

[Daryl Correia]

Investment Info:

Other commercial investment investment.

Purchase price: $1,240,000
Cash invested: $50,000
Sale price: $1,631,700

Mixed use property. Free standing commercial space and quadplex. Started converting quadplex from annual rentals to vacation rentals. Finished 2 of the 4 units and active on AIRBNB and VRBO. Started 3rd unit and sold to another investor and staying on as a property manager.

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

Location and owner financing made this deal a no brainer

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

For sale by owner sign out front of the property. No negotiation at all, I liked the price and terms the owner provided to me

How did you finance this deal?

Owner finance and OPM for down payment

How did you add value to the deal?

Due to the location of the property and season rental opportunity I switched from annual rental to vacation rental. Income with the 2 apartments that I finished went from $12,000 annually to $42,000 annually per apartment.

What was the outcome?

Sold to another investor for a profit of $280K+

Lessons learned? Challenges?

Don't get emotional or attached to property. I made mistakes and it costed me money

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

Not on this deal