Bradley Beach NJ investment pays off

[Desiree L.]

Investment Info:

Single-family residence buy & hold investment in Bradley Beach.

Purchase price: $560,000
Cash invested: $140,000
Sale price: $800,000

Purchased a 1904 home 4 blocks from the beach. Moved in, renovated it over 3 years... much of it myself. Rented out the attic on AirBNB for $150/night in season. Last year, I hired a contractor to execute on the complex kitchen design that I created which included removal of a wall and replacement of windows and doors. In March, I had an offer for $800K before I was able to list on the MLS. I sold the house, moved down to Florida and hope to do something similar in Delray Beach.

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

I knew the market in Bradley Beach, NJ was hot and difficult to get into. I chose a house that was very dated, but had tons of potential. I did a lot of the cosmetics before I moved in (removal of carpet, refinish wood floor), paint walls and ceiling. The home had tons of charm once it was polished up. I decided to take advantage of the charm on AirBNB and I found out I was a great host. enjoyed the experience and looking to do it again.

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

My target was Bradley Beach, so I was getting alerted every time a house came on the market. This particular house had come on the market, but went under contract quickly- before I had sold my previous house. Then, my house went under contract, and I was alerted that this house was back on the market. I quickly went to see it, placed an offer which was accepted.

How did you add value to the deal?

Modernizing the home without taking away the charm.

What was the outcome?

Ability to live in the home for the duration while getting an income from AirBNB. Sold the house for a $100K profit after 3 years.

Lessons learned? Challenges?

Being able to identify a good contractor is key. I was lucky that both time I used a contractor, they were professional and honest. There was one episode where one contractor subbed out to a floor installer. My experience with him was a nightmare, but luckily, was limited to 1 day.