All Forum Posts by: Paul Rumsey

Investment Info:

Condo buy & hold investment.

Purchase price: $379,000
Cash invested: $107,690

Latest short-term investment condo (3bd, 2bth)

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

I've had success with 2 short-term rentals, and wanted one more in relative close range to work and life. Ocean City is the most popular beach town and is a 3hr drive from Washington D.C.

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

MLS. no special negotiations, just found a seller that was motivated.

How did you finance this deal?

1st position HELOC. I moved into the property while getting it prepared for the next season so I could quailify for better loan options. Sort of my own twist on BRRRR.

How did you add value to the deal?

decor and furnishings attractive to vacation renters.

What was the outcome?

We shall see. The season will start around late March 2025.

Lessons learned? Challenges?

I underestimated the costs of furnishing from a blank slate, so now know to include more expenses in my upfront cost estimates.

Investment Info:

Other private money loan investment in Randalia.

Purchase price: $50,000
Cash invested: $50,000

Syndication deal on 12 beach home short-term rental construction project

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

I wanted to partner with some of my mentors so I could learn more about new construction without taking on all of the risks by myself.

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

Through REIA and investment groups

How did you finance this deal?

Funds from HELOC on another investment property

Lessons learned? Challenges?

Be patient. these are mid-term plays, so you must be prepared to go without the cash for several years.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $274,995
Cash invested: $81,011

One-stop real estate investment, using a company that provides soup-to-nuts service (sales, closing, funding, property management).

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

I've heard of these all in house investment options and listened in on a few webinars. It seemed like a potential way to expand into markets outside my personal reach using local expertise. The costs could be justified if the rental performs well (a little less profit short term, for longer term appreciation gains and with little to no effort on my part).

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

The company sends listings daily until I found one that I was interested in. The home was new construction and the builder needed to offload it to recoup funds and pay workers, so I got it at a small discount.

How did you finance this deal?

normal bank mortgage loan

How did you add value to the deal?

It is brand new build, so no room to increase value outside normal appreciation. Using it as rental which covers all costs associated with ownership.

What was the outcome?

It's a longer term hold play, so not much income to speak of this soon. The area has lots of growth and is expected to appreciate substantially over the next ~ 5 years, at which point I plan to sell to capitalize on that appreciation.

Lessons learned? Challenges?

Not all one-stop companies are the same. Be particularly aware of the rental/leasing policies (e.g. how is the company compensated for leasing? if they have a fee associated with a new lease, there is little incentive on their part to find the right tenant).

Investment Info:

Condo buy & hold investment.

Purchase price: $385,000
Cash invested: $79,701

Waterfront short-term rental condo (3bd, 2bth)

https://www.seasidevacations.rentals/rentals/sunset-bay-villa-310-nauti-girl

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

My first did well based on selecting an area that we frequent. We also started repeat visiting Chincoteague, VA annually, and so decided to give another STR run here.

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

MLS listing after a couple months of searching. The seller had a buyer that fell through and had already purchased their new home dependent on funds from the condo sale, so I was able to offer cash and a quick closing

How did you finance this deal?

Paid cash for the purchase, and then financed into a HELOC to pull most of my funds back out and have access to the remainder if needed.

How did you add value to the deal?

Furnishings and decor to make it attractive to vacationers.

What was the outcome?

It does well as a vacation rental, and we live on the island several weeks a year during off-season.

Lessons learned? Challenges?

Vet property managers well; income can vary greatly in the same location due to the quality of the property management.

Investment Info:

Other buy & hold investment.

Purchase price: $413,650
Cash invested: $92,000

5bd 4.5bth short-term / vacation rental.

https://www.resortrealty.com/booking/nauti-buoy/5683/#

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

We visited Nags Head annually, and started renting homes when the AirBnB boom hit. Because we knew the area and had experience with short-term rentals, I decided I wanted to add one to my portfolio.

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

After months of searching for the right property with my local agent there, we found this home sitting in disrepair as part of a divorce dispute. Most of the repair was within my realm and provided the opportunity to make changes more suited for a vacation home.

How did you finance this deal?

I financed the deal with an 80% HELOC. Once repairs were done, I had it appraised to a new ARV and then refinanced into a new HELOC to pull my repair funds back out of the deal.

How did you add value to the deal?

mostly cosmetic upgrades, but added deck furniture, an outdoor bar and hottub, and a game room on the ground level. Painting throughout with new kitchen and bathroom upgrades.

What was the outcome?

Property does very well, averaging over 30 weeks rental per year. During the down season we stay there... living at the beach for several weeks per year for FREE!

Lessons learned? Challenges?

Short - term rentals (STR) can be very lucrative if done properly. As it is seasonal, one must be prepared to 'float' the expenses for several months until in-season. Also learned to know the STR laws for each state.

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

My agent Edith Rowe was excellent!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $270,000
Cash invested: $20,000

4 unit (2bd, 1.5 bth each) long-term rental

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

I wanted to add multi-family rental to my portfolio

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

I researched the areas best suited for long-term rental. While looking at a unit next door (MLS), I met the owner of this unit by chance and started talking. Turned out they were interested in selling but were needing the income for a couple years, so we negotiated a seller financed deal.

How did you finance this deal?

Seller financed the full amount for monthly payments equal to their current income from rentals; balloon due 5 years. When balloon was due I put a HELOC on the property, paid the owner out, and took cash out for my next deal.

How did you add value to the deal?

did small renovations myself, added back decks, paint, new kitched appliances, etc.

What was the outcome?

Property appraised value increased substantially with improvements and new higher rental tenants