Updated over 6 years ago on . Most recent reply
My second vacation rental purchase -- $80k per year in cashflow
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $485,000
Cash invested: $140,000
Purchased this property for $485k in August 2016. Spend close to $200k to remodel, rehab, and furnish this large home in the mid-century modern style so popular in the area. This home grosses approx. $240k per year in short-term rents, as an 8-bedroom, 4-bathroom mid-century modern home with a large pool located on a golf course. After all expenses including mortgage, property management, capex, maintenance, I net around $80k per year with this vacation rental.
What made you interested in investing in this type of deal?
I was staying in a vacation rental in the area, and wondered why rents were so high, as compared to property values.
How did you find this deal and how did you negotiate it?
MLS listing.
How did you finance this deal?
Standard mortgage + cash saved.
How did you add value to the deal?
I took a lot of time understanding what improvements would help maximize the rents we could charge.
What was the outcome?
Existing vacation rental in our portfolio generating $80k+ a year in cashflow.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Rich Tomlin was our realtor on this purchase.