Investment Info:
Single-family residence buy & hold investment.
Purchase price: $206,000
Cash invested: $206,000
Land purchase $206,000. On a bayou on Choctawhatchee Bay
I am going to be building a SFR for (longer term) AirBnb - hoping to do monthly rentals. I would like it to be an "all-inclusive" type of property that allows for remote workers. Electric car, kayaks (it's on waterfront), bicycles, possibly a small swimming pool at some point, cable/internet, office space. Starting to look over designs now, and since lumber is finally stabilizing I hope to find a contractor, and start this fall 2021.
What made you interested in investing in this type of deal?
Land is a premium here. It was a single waterfront lot with no HOA.
How did you find this deal and how did you negotiate it?
Driving by/local knowledge. Negotiated through a realtor on both sides.
How did you finance this deal?
At first, financed then paid off. That's the tricky thing I learned about raw land, its not easy to finance - but after the build we will refinance any costs we have sunk into it, back out into the construction and then regular 30yr mortgage.
How did you add value to the deal?
We will be building a SFR on it to rent out. We did initially rent it out to campers, and we may do that again if it takes too long to get ready to build (2020/2021).
What was the outcome?
TBD!
Lessons learned? Challenges?
Raw land... a different animal than regular housing. I would be much more cautious if I ever purchased raw land again. Not to say that I wouldn't do it, I just think it's a very niche market that does not give cash flow very quickly.
