Updated over 4 years ago on . Most recent reply
Vacation Rental purchases
Investment Info:
Condo buy & hold investment.
Purchase price: $240,000
Cash invested: $48,000
1 bed / 1 bath Direct Oceanfront condo vacation rental on Hilton Head Island.
What made you interested in investing in this type of deal?
Small and manageable with high return.
How did you find this deal and how did you negotiate it?
Knowing the area, I knew where I wanted to invest and kept my eye open for the right opportunity. Direct oceanfront condo's don't last long so I jumped on it as soon as it hit the market. It was in 2018 so I just offered full price without an appraisal gap. It appraised $10k below offer price and they came down.
How did you finance this deal?
We financed through a mortgage lender that deals in condo-tels. (There is a check-in reception desk with property management as an option so they consider it a condo-tel)
How did you add value to the deal?
Being in real estate for almost 20 years, understanding the process made it easy. I also do my own property management and doubled what the past owner grossed.
What was the outcome?
Best purchase I have ever made, I am currently looking to purchase another small vacation rental.
Lessons learned? Challenges?
Knowing the challenges of buying in a condo-tel resort and resorts that still have timeshares pose a challenge. Being creative and shopping for a good mortgage lender that knows ahead of time if they provide loans for such properties makes a difference.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Myself!