First Investment in a dream location

[Anthony Benjamin]

Hi guys,

I am planning to buy a REO foreclosure property on a resort-like location. The apartment is a 1b/1b that needs total restoration, estimated in around 20k. One thing that will affect my cash flow are the Home Owner Association (HOAs) fees. Yes, it has 2 HOA fees, one monthly fee for the neighborhood and a quarterly fee for the whole complex. This is one neighborhood within multiple neighborhoods around it.

Current options that I am thinking about:

• Vacation Rental (high profit / high vacancy rate) – calculate that with 2 weekends rentals I can paid all the monthly expenses. The more reservations, the better the profits. In addition, I can use the property for family weekend vacations or second home since because I like the area.
• Monthly Rent (low profit / low vacancy rate) – Cash flow around $150 monthly.
• Flip (one time profit / waiting time for the resale) – Comp Sales are around 200k, and I planning to buy it for less than 100k, plus the rehab expense.

My plan for now is to set this property as a vacation rental and use homeaway, vrbo or airbnb to manage the reservations. After the rehab is completed, I will like to refinance the property and take the profits from the equity. Then use the equity profits as a down payment to buy another property that will offset the loss/profits of this property. Then I will have 2 properties. A good way to start my Real Estate Investing path. I think…

I will like to hear about your feedback in regards. Any strategies, suggestions and/or options that I can use in this business will be gladly appreciated.  In addition, I am experiencing problems with financing.  I will like to hear about options about it too.

Sincerely.

Island Newbie

P.S. - This is my first post so sorry for my writing...