All Forum Posts by: Yolanda Salas

Investment Info:

Single-family residence buy & hold investment in Panama City Beach.

Purchase price: $89,000
Cash invested: $50,000
Sale price: $249,000

Condo resort - short term rental income for duration of hold period, sold to reinvest in other property.

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

I was all about the investment rental income and appreciation available. At first it was to have a beach front condo to be able to enjoy in the area when I lived in another state, I used the onsite property management to make it easy on me due to my demanding job and travel schedule. Price was right. I was able to leverage the condo to allow renovation with other cash on hand.

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

Used a realtor recommended to me.

How did you finance this deal?

Second home loan, 15 year mortgage with 25% down.

How did you add value to the deal?

Remodeled and reconfigured the dated interior with all new flooring, kitchen cabinets and bathroom, new furniture, paint, etc. Hired contractor for all the heavy “lifting”.

What was the outcome?

For an older condo resort complex, unit slept 6, gross STR income was increased after renovations to between 30-35K per year. Held the property for 12-13 years, sold when wanted to invest in other property.

Lessons learned? Challenges?

Probably held on to this property too long.

Congratulations! I love duplexes for investment income. I started out with DSF homes but luckily sold most of them just prior to the hurricane, as I move more into multi-family. 

@John McGonigal @Lorraine Patterson  Hurricane Michael devastated Panama City, (further east than Panama CIty Beach) and caused some damage on the east end of the beach.  Various condo complexes on the east end have sustained some damage but overall we have faired well. We have seen very low inventory in single family homes (attached and detached) which have caused LT rents to shoot up.  Prices for undamaged homes has also increased. As far as condo inventory we have plenty in all price ranges, but your typical 2 bedroom condo will generally be over $250K, the exception will be older properties that need updating and LTW where the bulk owner is converting their Long-term and short-term rental properties to their available sales inventory. 

Yes Peter,  the bulk owner does offer financing but thru 3 local lenders that has signed on, each with variants in ARMs and 1 with a fixed product. 

Hi I live and invest in Panama City Beach - LTW is the best price for what you want to do, but remember its across the street from the beach.  The property has a great amenities package and boasts I have sold several units there to out of town buyers and my customers have been pretty happy with their results, but they are using property managers and they have not leveraged their purchases.  As an aside, Financing there will need to be done through local lenders that offer condo-tel products  unless your home lender will hold a portfolio loan, as this property will not meet Fannie Mae guidelines.