2nd Short-term rental

[Paul Rumsey]

Investment Info:

Condo buy & hold investment.

Purchase price: $385,000
Cash invested: $79,701

Waterfront short-term rental condo (3bd, 2bth)

https://www.seasidevacations.rentals/rentals/sunset-bay-villa-310-nauti-girl

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

My first did well based on selecting an area that we frequent. We also started repeat visiting Chincoteague, VA annually, and so decided to give another STR run here.

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

MLS listing after a couple months of searching. The seller had a buyer that fell through and had already purchased their new home dependent on funds from the condo sale, so I was able to offer cash and a quick closing

How did you finance this deal?

Paid cash for the purchase, and then financed into a HELOC to pull most of my funds back out and have access to the remainder if needed.

How did you add value to the deal?

Furnishings and decor to make it attractive to vacationers.

What was the outcome?

It does well as a vacation rental, and we live on the island several weeks a year during off-season.

Lessons learned? Challenges?

Vet property managers well; income can vary greatly in the same location due to the quality of the property management.