Vacation Rental During Pandemic

[Greg Haygood]

Investment Info:

Condo buy & hold investment.

Purchase price: $400,000
Cash invested: $100,000

My family purchased a vacation home that we could rent out when we're not occupying. It will cover approx half the carrying costs, plus market appreciation, and we have a "happy place" within a 3 hour drive for no additional costs.

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

I wanted an asset that could provide a convenient vacation option for the family that could also be monetized to reduce the carrying costs.

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

Nothing special. I used a local realtor. The key was searching during the off season.

How did you finance this deal?

Conventional mortgage

How did you add value to the deal?

Minor improvements to an outdated look.

What was the outcome?

The home booked for the season by the end of January.

Lessons learned? Challenges?

Vacation homes can make money during a pandemic (Or similar) if the travel costs to the destination are minimal. This home is driving distance from a lot of dense cities.

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

Doug Thompson Bethany Beach, DE.