All Forum Posts by: Joe Rohne

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $785,000
Cash invested: $156,000

Short term vacation rental in Panama City Beach. New construction, fully decked out on the design and amenities. purchase price 785K, 40K in seller credits, 120-140k gross rental projections

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

high cash flowing short term rental

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

I am a short term rental specialist and help investors, found this deal for myself

How did you finance this deal?

DSCR loan

How did you add value to the deal?

40K in design and furnishings and great pics

What was the outcome?

cash flowing

Lessons learned? Challenges?

Pool heaters are expensive but necessary

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

Joe Rohne (Me) and Parker Borofsky at Movement Mortgage

 airbnb.com/h/classicbeachhousepcb

 That was my investment for renovations and furniture. Business partners did the 20% down payment. 

 It can furnished, we had to do a few things but not a lot. My ConC will be gross minus everything including mortgage payments. Does not include tax savings and cost seg study that will be done. 

 Posted them above. I'm a Realtor in PCB, we should connect and network. 

 We didn't go live until November due to some projects that needed done, it started cash flowing in March. Our cleaners are fantastic but we don't make money on the clean. I want to stay competitive with the competition on that. 

insurance was about $4k per year plus an umbrella policy for liability. 

I use dynamic pricing through pricelabs and that keeps put ADR pretty solid. We are fully booked in April, most of May, and most of June. 

I do targeted FB/insta ads, buy buy sell trade groups, etc.. that has helped get some more direct bookings but we alsonare listed on airBNB/VRBO. 

Yes,  I'll be close to a 20k net, maybe a little more. Beach markets get over half the revenue in the 3 busy months. 

Buying this STR going into off-season I knew I would at best break even the first 6 months which I did. Been running high occupancy since March 1st and with my current bookings and projections through summer I should hit right at or a little above a 20% cash on cash return. My goal is 25% which I think I will be really close to doing.