Investment Info:
Single-family residence buy & hold investment in Navarre.
Purchase price: $39,000,000
Cash invested: $80,000
Sale price: $435,000
3 Bedroom, 2 Bath Condo on Navarre Beach. Grossed $58K per year in 2017 and 2018 with a ROI of 19% per year after expenses.
What made you interested in investing in this type of deal?
High return on investment, and rising property values.
How did you find this deal and how did you negotiate it?
Realtor that knew I was looking for investments brought it to my attention.
How did you finance this deal?
Traditional 30 year fixed note.
How did you add value to the deal?
Added some decor and fixtures, established AirBnb / VRBO accounts, hired a cleaning service, found a reliable handyman.
What was the outcome?
The short term rental was very lucrative. We had over 90% occupancy in 2016 and 2017 which grossed more than $58K per year. 19% ROI or profit to initial income invested in both years. Sold the unit to create liquid cash for another deal we are working on.
Lessons learned? Challenges?
Ensure you have a good cleaning crew up and handy man upfront. Renters will call you at all hours with simple issues. Understand how VRBO and AirBnb claims work on damages before you start. Understand state and bed taxes, and who pays them before you start.
