found an off-market deal
"I found an off-market deal: a 6-unit, 1-bedroom property in Florida. It's located about 100 yards from the ocean, and you can see the water from the far-right unit. This area of Florida is known for its high prices, ranging from 5 to 9 million dollars on the island. The owner is offering financing for 30 years at 50%. Currently, all units are rented below market value at $1325 per month. The owner hasn't made any improvements to the property in over 25 years. Each unit is equipped with sewer connections and individual meters.I ran the numbers, and the property cash flows for the current owner. However, at an asking price of 1 million dollars, I estimate that I'll need to invest around $100,000 to bring it up to a desirable condition to raise the rents. In my opinion, this property would be an excellent candidate for Airbnb, given its prime location. Unfortunately, traditional banks are hesitant to loan on $500,000, which is the amount that needs to be financed. The remaining $500,000 the owner is willing to carry for 30 years, likely at a 5% interest rate. This is the last of the last at this price point. During on season there is an 1-2 hour bumper to bumper traffic, just a one min walk from the main road. Its a major destination point, thats only growing. I've also brainstormed other ways to even further enhance the property's cash flow, such as adding an RV pad. One option is to rent out a fully decorated vintage airstream, or alternatively, construct a 40' RV pad with hookups and rent it out. While I do have some cash on hand, it's not enough to cover the entire investment. Any suggestions would be greatly appreciated, as I'm eager to explore this opportunity further."