Investment Info:

Other buy & hold investment in Galveston.

Purchase price: $169,000
Cash invested: $52,000
Sale price: $242,500

We purchased a 1 bed, 1 bath beach condo in Galveston, TX. It has direct beach access, a pool, and a hot tub. The condo sleeps 6, a king bed, hallway built-in bunk beds, and a sleeper sofa. It also has an ocean view.

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

This was our first time purchasing a short-term rental. We were interested in the deal because of the nightly rate and the location of the condo complex.

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

We found the deal on the MLS. We did not negotiate.

How did you finance this deal?

We financed the deal with the traditional 30-year note.

How did you add value to the deal?

We improved the decorations in the condo.

Lessons learned? Challenges?

Here are some of the lessons we learned. First, if you are going to purchase a sessional short-term rental, don't buy at the end of the session. Second, before you start to rent out the property to guests, be your own guest and stay in the condo and use everything. Third, schedule quarterly maintenance on major appliances like heating and air. The last thing you want is the ac to go out in the middle of the summer or the heat will go out in the winter. Which will happen.