Hi, looking for advice here.. This would be my first STR purchase, a resort condo. It's a small, charming studio on a lake resort in NC.. with tons of amenities, but a high POA for those amenities. like $3600/year.
The deal would have to be all cash though, b/c seller says banks won't give a loan for these kinds of condos which are mostly investors putting their units up on Airbnb. Price is close to 70K. I looked at airdna, and the unit occupancy rate is all over the map for these types of units, from great, to not so great. This particular unit I'm told rents most of the year, except a few winter months, for about 120/night. I did the math and if I had even just 6 nights per month, I'd be able to meet my monthly expenses.
HOWEVER, now my brother says the unit will take a long time to appreciate, though monthly cash flow can be good. Since the 2007 market crash, they've ranged from about high 30's to high 50's. Building is from the 1980's. Very cute in a beautiful resort. My brother though doesn't like cash investing, when rates are still low.
Would I be making a mistake here? Any thoughts?
