Equity Investor Needed for Cabin Rental Property
I am the broker for a client who is looking to buy a cabin rental property. Initially, the property was set up for short term rental, then the current owner converted them to long term rentals. Buyer wants to let all leases run out and do short term rentals again.
Price is listed at $640,000. 7 units. Currently monthly long-term rental income is $5800, $69,600 annual. Current debt service is $34,872 annual. Projected first year income is $84,801 with most units being converted to short term by mid-year. Second year and thereafter projected income is $130,000 after full conversion.
Property is in good shape with very little deferred maintenance needed, sits on 2.8 acres, has a creek running through it, and over 1 acre foot of water rights. Buyer intends on living on site and managing.
Buyer is looking for an equity investor to provide down payment and secure funding, and would share in profits. Buyer has money down, but not enough for the full investment. Financial projections available now, full proposal ready soon. Property is not yet under contract.