Updated 11 months ago on . Most recent reply
Nags Head Short-term rental
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!
