All Forum Posts by: Kyle Momany

Investment Info:

Single-family residence buy & hold investment in Panama City Beach.

Purchase price: $770,000
Cash invested: $138,500

This is a 5 Bedroom, 3 Bath SFH home - Just 3 blocks from the beach. The home had been recently remodeled and had rental data over $115,000 for the previous year. It is a 2 story home with separate entrances to both floors as well as fully equipped kitchens/ living rooms on each floor. With the potential to rent it out to large groups or families in the summer, then split the unit into two in the off season for longer term stays.

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

This was a Day 1 Cash flowing deal. We also had the potential for value-add & additional income.

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

This was an off market deal, that we spoke with the seller directly on.

There weren't much negotiations. We offered the seller a number, he accepted it.

How did you finance this deal?

This was financed with a 15% down second home loan.

How did you add value to the deal?

The home has an empty garage as well as an empty storage room. In the off-season we will be closing both of these in. The storage unit will become another bathroom, while the garage because another bedroom.

What was the outcome?

The outcome should be - Higher value of the home, due to more heated/cooled square footage. But also, increased rental income due to more bedrooms!

Lessons learned? Challenges?

Buying Mid-Summer can be difficult. But if possible, it is best to take over any rental income there is currently, then get/manage your own after the high season ends.

Our biggest challenge was making sure all systems, tools, and processes were 100% ready the day of closing, due to having bookings that same day and for the 45 days following it.

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

Shameless Plug - As an Agent/ Investor in the area, I was able to represent myself.

We use IGMS, which integrates the listing platforms ( AirBnb, VRBO) but also works with PriceLabs. There are plenty of others out there, just find which works best for you. 

Feel free to reach out with any questions!

Hey Everyone,

I'm going to be in the Mobile, AL area this weekend and wasn't able to find any local meetups in the area.  Does anyone know of any or want to connect over some food? I'm local to the Destin, FL area but would love to learn more on the surrounding areas!

Piggy backing on some things that have already been said. Don't depend on one thing.

As an agent & investor, when analyzing properties locally:

I will look at Airdna (Or one of the many other zestimate style websites) for a baseline number, correlate that to any rental projections as well as actual rental data that is in the MLS. Then, find out where that happy medium is. I tend to even take an additional 10-20% off of that number as well. So many people will run and buy a property based off of what one or two units did in a building ( or community) and not the average.

Find a good agent/investor in the market you're looking in, that can give you that value. After you analyze enough, you'll know the potential for something just by location and beds.

Best of luck!  

Plenty of great options!
As an agent and local investor, I'd love to answer any questions.

Also check out  @Lake Lutes and @Matt "Roar" Gardner!

Just to reiterate what's been mentioned. The "rules" tend to be for baseline analysis. If the numbers pencil out for a return you are happy with, jump on it!

I'm starting to notice more multifamily opportunities in PCB recently. Typically they were previous LTR and might need some updating and furnishings, but the numbers pencil out great.

Let me know if I can be of any help.

As Christian mentioned above,

Exp could also be a great fit due to being a cloud brokerage. A handful of the agents in my orginization are also investors that chose eXp not only for the splits/opportunities, but because there are no required amount of sales, desk duties, etc.

Feel free to reach out with any questions! :)

@Vanessa Contreras

It's definitely doable!

Assuming it being residential (2-4 units) there are a few financing options. Varying between 3.5% - 20% down. The only downside to multifamily is most lenders won't let you buy them on a second home loan (10% down).

We have a 2 unit in Panama City Beach that allows us to rent the entire property out for family gatherings,etc. But also allows us to market to smaller parties in the off season.

Do it!

Hey Brad,

@Matt "Roar" Gardner has worked with multiple transitioning military members using the skillbridge program along the Gulf Coast ( PCB - Pensacola). I'd highly recommend reaching out to him! 

I'd recommend the Pensacola area or even the Forgotten Coast ( Port St. Joe, Mexico Beach). As mentioned above, finding the area's that aren't talked about as much could be great right now. If you're wanting to be in a more established STR area, Destin & Panama City Beach are great as well. Airdna released data a few weeks ago that Panama City Beach was one of the highest nightly rate increases across the US! Our 5 bedroom on the east end has reflected that.

Let me know if you've got any questions, best of luck!