Key Largo Vacation home for free?

[Scott McGrath]

Investment Info:

Single-family residence buy & hold investment in Key Largo.

Purchase price: $203,000
Cash invested: $40,000

Single family 2 bedroom 1 bath in Key Largo FL, not on the water but has an HOA park on Florida Bay with beach, dock, and boat ramp

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

Wanted to buy an investment home in the keys so we use it for several weeks every time a renter moved out while repairing/repainting. This would allow us time in the keys, and house that would be paid for (by renters) by the time we retired.

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

I found on a property website, and worked with an agent friend to negotiate.

How did you finance this deal?

We financed this house as a second home, that way only 10% would be required instead of the usual 20% needed for investment properties.

How did you add value to the deal?

We recently enclosed the porches to add an additional bed and bathroom. We plan to enclose the first floor as well and create another rent-able unit and keep the main house for ourselves. This new 1 bed 1 bath would be enough to cover the mortgage and we could keep the upstairs for personal use.

What was the outcome?

The property has seen 75% increase in value over the last 6 years.

Lessons learned? Challenges?

The Monroe County building department is HORRIBLE. We will only use private providers for inspections and permits from now on.

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

Mike Williams with Remax of Deltona, a good friend and great agent.