1st invesment property. STR beach house
Investment Info:
Single-family residence buy & hold investment in Surf City.
Purchase price: $459,000
Cash invested: $57,000
Contributors:
Sean McDonnell
A single family house, 2nd row beach house. It is literally 30 seconds from public beach access. It is a little dated but required very little up front work. Made some minor updates like a newer TV and some furniture updates. We were able to rent it three weeks after buying it. We are currently using it mainly as a STR but with longer rentals in the off season when able to. Plan to make future renovations to increase the value as well as increase rents.
What made you interested in investing in this type of deal?
We frequently traveled to the beach and liked the vibe. My uncle has some rentals in North Carolina with good success so i followed. While i think we got lucky/had some luck, i did my research before hand. My Criteria was: a house we (my wife and i) could afford to pay alone if it didn't rent, on the beach or very close, walk-able to the beach, we would want to stay there, and our family could come and stay.
How did you find this deal and how did you negotiate it?
Found this deal through automated listing from Sean as well as Zillow. Negotiations were more in credits. Basically paid asking. Sean handled advised and handled the negotiations for us.
How did you finance this deal?
Conventional loan with 10% down. Had saved the 10%
How did you add value to the deal?
Made some minor updates but i would say no value added...yet.
What was the outcome?
Purchased with little issues. Updated railings and fresh paint.
Lessons learned? Challenges?
Oceanfront and a pool are definitely the move in that area. Self managing it more profitable but definitely requires work. A good team is key. There is no way it would run as well as it does without a good team (real estate agent, cleaning crew, handyman, electrician). Sean provided even more assistance here and was great.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Sean McDonnell was instrumental to the purchase of the property and continued success. Definitely recommend.