All Forum Posts by: Walter Key

Going to shoot you a message. Jordan Weare is your guy!

I'm a REALTOR in the Charlottesville market. Welcome to BP!

Can't wait to see the finished product on this Dennis. You've got a great project going and honestly, I'm betting that when it's all said and done, your family wants to stay and enjoy the makeover for a few years. :) Either way, I'll be here to help!

Tristan,

She is VERY knowledgeable about the condo/vacation rental scene here in the area. I'm not 100% certain about her zoning knowledge but if you have questions, I'd highly recommend you give her a shout. 

Shawn,

After running total cost (PITI, Management fees, Condo Fees, etc), I used the on-site property managers to provide an actual rental history by which I calculated the average vacancy rate and nightly rent rate so I could annualize that number and break it into a Monthly income.

 Tom,

I used a local commercial lender and purchased the condo through my LLC.

For what it's worth, I live in and have my LLCs in VA and I'm 8 days away from closing on a Vacation Condo in NC. Smooth sailing. I personally went with a local bank (local to NC) that would lend and title the condo in the name of my holdings LLC. I got a 20-YR loan at 3.99% with 15% down. They had options to go as low as 10% down if I wanted.

What part of NC are you looking at @Account Closed?

Investment Info:

Condo buy & hold investment in Banner Elk.

Purchase price: $115,000
Cash invested: $19,650

Vacation rental condo in ski resort of North Carolina. Purchased through my LLC with a local commercial lender. 15% down, 20-YR loan @ 3.99%. After PITI, condo fees, utilities, and onsite professional management fees, I'm sitting at about $1,115/MO average monthly cash flow and a 68% Cash on Cash ROI with a break-even period of less than 18 months. Bonus: My family vacations in this area every year so now we'll have our own, completely remodeled, condo to stay at when we go!

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

My in-laws vacation in this area every year and we've started going down to vacation with them in the past couple years. It was a no-brainer after running the numbers.

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

Found by shopping Zillow then reaching out to a high-octane agent in the area. It was listed at $119,900 and the unit was completely remodeled, fully furnished, and turn-key. We got it for $115K.

How did you finance this deal?

I used my business LLC and a great local commercial lender.

How did you add value to the deal?

Didn't need to on this one. The numbers are great on their own.

What was the outcome?

We actually close in 9 days and then we'll be staying in it for a week before popping in into the rental management pool for cash flow.

Lessons learned? Challenges?

This one was incredibly easy because: 1) Our business was already established and the LLC had funds sitting in the account. 2) We kept the lending at a local in-house lender which offers much more investor/business friendly terms.

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

If anyone is looking to buy in the Boone, Banner Elk, Sugar Mountain, Beech Mountain, and surrounding areas of North Carolina, reach out to Sarah Long of 828 Real Estate. She is a rock star!

Can I get an Amen!! ^^THIS! Find an agent that owns investments themselves. Find an agent that isn't trying to push you into a deal.

I'll give you a quick example...but it's nowhere near you. I just bought a vacation rental condo in the ski-resort area of North Carolina. I have rental history from the onsite management company to verify monthly income potential. After all my fees and expenses (including 25% for onsite management) my Cash on Cash ROI is over 50% and my break-even period is less than 2 years.

As other have already accurately stated, this is completely dependent on your personal investment goals. Whether you look at $$ per door, Cash on Cash ROI, break even period, etc, there are two things you need to remember:

1) Know your goals and the numbers you need to hit them.

2) Run the numbers and don't try to fudge them because you think you can maybe squeeze more ROI out of it. The numbers don't lie.

For me personally, my numbers depend on what I'm buying (fix and flip, long-term rental, vacation rental, etc). I typically look at Cash on Cash ROI, Break-even period, and monthly cash-flow...in that order of precedence.