6 months into a new Vacation Rental purchase

[Joe Garvin]

Investment Info:

Single-family residence commercial investment investment.

Purchase price: $128,000
Cash invested: $4,800

We purchased a 1 bedroom 1 bathroom condo in a beach resort community with the intention of renting out as a vacation rental year round. We list the property through AirBnB and VRBO as well as Lodify.

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

We love owning and operating vacation rentals

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

Through contacts at the resort

How did you finance this deal?

Paid cash and in the process of pulling Equity out

How did you add value to the deal?

This is our third vacation rental so we know what the earning potential is

What was the outcome?

Currently own and operate and have about 73% occupancy YTD.

Lessons learned? Challenges?

Not to invest to much because in the end as long as you have the essentials a granite counter is not going to influence a renters decision to return.

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

Used an agent we know to close on the property

[Joe Garvin]

@Brandon Sturgill Hi Brandon, Taxes in our county are 11.5% and will get raised to 12 soon. Where we own is a fairly sought after location so we've been pretty fortunate all our units have stayed consistently booked. It's a bit of work, but more enjoyable than LTR; at least for us.