Updated almost 3 years ago on . Most recent reply
NC beach STR
375k purchase
20 week str in high season (may1-mid sept) total property income would be around 50-60k. Low season 7-10k estimate. All before expenses.
It’s a 3/2 that just needs a bit of aesthetic work to be up to snuff with comparable properties. Maybe 10-20k total in up front expenses.
Thinking about using 20k personal cash plus HELOC at primary of roughly 30k at 8% to fund DP plus up front expenses.
I’ve determined that after all expenses, annual cash flow would be roughly 8-10k. This takes in account vacancy during high season, cleaning, utilities, insurance (💰).
I'm pretty risk averse and this would be our first project. The current landscape of interest fluctuation scares me a bit but since cash flow is positive and NC beaches are extremely popular despite economic disparity nationwide, im itching to go after this deal. Any input by experienced investors that are utilizing HELOCs or purchasing beach properties for STR and second home mortgages would be appreciated. Thanks!