First Short Term Rental

[Kevin McCrossin]

Investment Info:

Condo buy & hold investment.

Purchase price: $240,000
Cash invested: $84,000

Bought the unit as a Short Term rental for the summer season. When we bought we were able to secure a 3.5% rate, put 20% down, $30k in renovations. We take 2 weeks in the summer and rent the remainder and still end cash flow positive. Would love to repeat this (appreciation has been great) but with rates it doesn't currently support the prices/weekly rents

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

Long term appreciation on one of the last affordable beach towns in NJ

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

A family friend called me as it was listed on the MLS

How did you finance this deal?

Cash and conventional mortgage

How did you add value to the deal?

Added about $30k in renovations

What was the outcome?

We use the condo in the offseason, and take 1-2 weeks in the summer. While I would love to keep it for just us, having rentals to cover the full cost of carrying the property has been great. I got an offer of $600k (2024), but not looking to sell it at this point

Lessons learned? Challenges?

I have a property manager who helps with the booking and renter issues (if any), a cleaner who turns over the property. When I was evaluating this purchase there was a duplex across the street for sale (about $600k). I regret not doing it but thought I would be more conversation for my first property. It is also nice having the HOA as it spreads the cost for flood insurance and the roof we recently replaced