4 unit vacation rental in La Jolla Shores

[Krystle Moore]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in La Jolla.

Purchase price: $1,900,000
Cash invested: $850,000

4 unit vacation rental

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

The location and vacation rental opportunity. When we purchased the property, it was a long term rental with one unit left vacant for the seller's to allow family and friends to stay. There are very few hotels and 1 bedroom vacation rentals in La Jolla Shores. The property is also condo'ed.

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

Through an agent. The property had been sitting on the market for a while.

How did you finance this deal?

Initially, we got a private money loan - had to close quickly. Then we refinanced into a low rate 7 year fixed, interest only.

How did you add value to the deal?

We converted the units to vacation rentals and significantly increased the income. We more than doubled the income we were getting as a long term rental.

Lessons learned? Challenges?

We have done extremely well with the vacation rentals and would love to do more.