New Buy and Hold Short Term Rental

[Karl McGarvey]

Investment Info:

Condo buy & hold investment.

Purchase price: $113,500
Cash invested: $28,375

Contributors:
Holly Kaufman

Beach condo in Galveston Texas with a great view of the ocean. We offered $115,000 initially and walked away when the seller's counter offer did not work for our numbers, but we told them our offer was good for 7 days if they changed their mind. On day 6 they called and accepted our terms! We negotiated further in the option period and were able to get even more off the purchase price which.

Owner Finance, 25% Down, 5% Interest, Balloon Payment at 5 Years. Closing costs $800 for the buyer. Should Cashflow apprx. $400/Mo. We closed start to finish in 8 days from the day we signed the contract.

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

Galveston is a booming market, and while the seller's market is making deals tough to come by, this one is proof that you never know when someone will say yes.

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

Found this deal ourselves on the MLS, my partner and I are both agents.

How did you finance this deal?

Owner Financing.

How did you add value to the deal?

Added value on the initial purchase by negotiating the sales price down 12%. Will increase the value again by replacing the floors to update them to current market standard.

Lessons learned? Challenges?

Not all title companies and RE Lawyers are created equal. We could have closed this deal in under seven days but were delayed by the supporting parts of the deal.