Vacation Condo w/ Great ROI

[Walter Key]

Investment Info:

Condo buy & hold investment in Banner Elk.

Purchase price: $115,000
Cash invested: $19,650

Vacation rental condo in ski resort of North Carolina. Purchased through my LLC with a local commercial lender. 15% down, 20-YR loan @ 3.99%. After PITI, condo fees, utilities, and onsite professional management fees, I'm sitting at about $1,115/MO average monthly cash flow and a 68% Cash on Cash ROI with a break-even period of less than 18 months. Bonus: My family vacations in this area every year so now we'll have our own, completely remodeled, condo to stay at when we go!

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

My in-laws vacation in this area every year and we've started going down to vacation with them in the past couple years. It was a no-brainer after running the numbers.

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

Found by shopping Zillow then reaching out to a high-octane agent in the area. It was listed at $119,900 and the unit was completely remodeled, fully furnished, and turn-key. We got it for $115K.

How did you finance this deal?

I used my business LLC and a great local commercial lender.

How did you add value to the deal?

Didn't need to on this one. The numbers are great on their own.

What was the outcome?

We actually close in 9 days and then we'll be staying in it for a week before popping in into the rental management pool for cash flow.

Lessons learned? Challenges?

This one was incredibly easy because: 1) Our business was already established and the LLC had funds sitting in the account. 2) We kept the lending at a local in-house lender which offers much more investor/business friendly terms.

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

If anyone is looking to buy in the Boone, Banner Elk, Sugar Mountain, Beech Mountain, and surrounding areas of North Carolina, reach out to Sarah Long of 828 Real Estate. She is a rock star!