Beach rental property

[Drew Landry]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Orange Beach.

Purchase price: $380,000
Cash invested: $76,000

3 bed / 3 bath condominium at 24 acre resort on the bay in Orange Beach. Using property as a long term rental.

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

I live near the beach in Alabama and wanted a property that would rent well and pay for itself to have in retirement.

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

I used a realtor/friend who found the deal on MLS. It was the last of 6 units owned by the same man who was motivated to sell. I bought when the market was down.

How did you finance this deal?

I financed as a first time home buyer and put 20% down.

How did you add value to the deal?

We have upgraded appliances, paint, bedding, furniture, tile and cabinet doors/drawers to keep it contemporary and updated.

What was the outcome?

The property rented out very well since initial purchase and only came out of pocket one year. the beach rental market has continued to do well each year.

Lessons learned? Challenges?

I set my budget low when I started researching properties but increased after reviewing local rent stats and found out which properties rented the most. Had to find a complex with HOA in good standing and PIP construction to keep insurance costs low.

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

I worked initially with Keller Williams but the agent has since become a Broker. I would definitely recommend Jason Will Real Estate out of Fairhope and Orange Beach Alabama.