First time investor, should I buy a multi-unit vacation property?

[Tyler Hardy]

I'm a first-time investor, and I guess you could say I've always been a little ambitious. I'd like to get some opinions on a property that I've been interested in for some time.

I live in Georgia but I found a multi-unit vacation property, on the beach, in Panama City Beach Florida. It's been on the market for a little while and I have been watching it like a hawk. I've already talked to the agent and got as much information about the property as I can. My question is, as a first-time investor with this be too big of a jump into the world of REI?

I've analyzed this deal in a number of different ways and it keeps looking great on paper. The purchase price is, what I feel, well below market value and generates great numbers on a rent roll. As of now, the property owner is not renting the entire complex out for almost half of the year so his friends and family can stay there for free. This means that the rent roll as it stands is lower than many investors would like to see. On top of that, it needs a few renovations to bring it up to speed. I've asked a few larger investors about why this property is still in the market, and the answer I keep hearing is that 8 units is too small for the big guys to go after, but the price is too large for many of the small guys to bother with. I feel like it may fall in a sweet spot for something that could be a great initial investment, but I don't have enough background or experience in real estate to know whether or not this deal is worth pulling the trigger on.

Let me know what you think about this deal, and whether or not it's something that a newbie investor should jump into as a first property.

[Tyler Hardy]

@Melissa Jolley

I have considered looking into single, and multifamily long-term rentals in the Panama City area. This property was one that I drove by on my way to a restaurant on vacation and haven't been able to get out of my head for almost a year now. If you know the property I'm talking about, I would love to discuss it further with you, just to get some local professional input.

As far as long-term rentals in the Panama City area, I would be very interested in talking with you about it. Send me a PM and we can talk about options and opportunities in the area. Thanks for the response!