Miami Short Term Rental

[Jesse Rodriguez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $715,000
Cash invested: $297,000

Current Price: $830,000 (originally $950,000 on 4/13/2024, reduced by $120,000 in 6 months). The property is distressed (unpaid taxes for 2 years). Seller (also the agent) purchased it in Jan 2023 for $730,000. Current "As Is" Value: $770,000. Acquisition Target: $730K-$780K; ARV: $900K; Repairs: $120K. Offer Accepted: $715K. Loan: Bank Statement, $5,500/month PITI. STR income: $160K/year. Net Income post-mortgage: $75K/year. Total Investment: $297K; ROI: 25%/year; 10-year equity: $1.5M.

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

This is what my company does for our clients.. This is what I do. We give an A-Z Solution. We own a real estate, mortgage, and property management company solely focused on Short Term Rental Investments

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

Every Week I scan the MLS, navigating cities and towns in South Florida that are friendly (and not friendly) toward short term rentals. I compile the list of only properties that can gross six figures plus and with prices under $800k. I then send these to my clients.

How did you finance this deal?

Being a 20 year mortgage expert and real estate investment veteran, we used our mortgage company to secure below market financing.

How did you add value to the deal?

Being a one stop shop for mortgage, real estate, and property management helps us save our clients $$$ and they only have one company to deal with and one contact saves time and creates an unmatched synergy.

Lessons learned? Challenges?

The property will need to have a slight rehab to get it up to STR standards, but when complete it should easily be a $200k Gross booking revenue property.

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

Yes we are all in house.