2 BR, 2 BA Condo Unit on the Beach

[Robert Carlson]

Investment Info:

Single-family residence buy & hold investment in Fort Walton Beach.

Purchase price: $150,000
Cash invested: $10,000

2 BR, 2 BA, 1100-square-foot single family condo unit in 60 member complex on the beach. Not yet profitable, because of the expensive association fees. I hope for this unit to be profitable within the next 2-3 years with the improving rental market conditions in the area. Asset has doubled in appreciation though, so it is not all bad. I at some point will refinance, take extra cash out, and invest in other properties after doing the correct math and using Bigger Pocket's calculators and my own thorough research.

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

This used to be my primary residence. Converted it to a rental property after moving out. Did about a year of research for condos on the beach in this area before finding a great deal. This unit is also in a condo complex built of reinforced concrete and has easily survived many Cat 3 hurricanes. It is also on the 3rd level, making it flood resistant. 

[Charlie Cameron]

@Robert Carlson congrats!

Is there some reason it isn’t profitable yet? I know a few guys with similar condos that are cash flowing.