Miami Short Term Rental

[Jesse Rodriguez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $565,000
Cash invested: $125,000

Listed Price: $585K (originally $585K, 30 days on market). Seller purchased in 2018 for $250K. Current "As Is" Value: $625K. Target Price: $575K-$585K; ARV: $625K+. Repairs: Add a pool ($77.7K). Offer: $575K. Loan: 20% down, $4,038/month PITI. STR income: $170K/year with pool. Net post-mortgage: $91,586/year. Investment: $124.2K; ROI: 73%/year; 10-year equity: $1.46M; Total cash return: $1.45M. 10-year equity multiple: 10x on $124K investment.

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

My company provides an all-in-one solution for clients. We operate a real estate, mortgage, and property management firm dedicated exclusively to Short Term Rental Investments.

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

Each week, I analyze the MLS, exploring cities and towns across South Florida to identify areas favorable (or not) to short-term rentals. I curate a list of properties priced under $800K with the potential to generate six-figure gross income and share it with my clients.

How did you finance this deal?

Conventional 20% down. We own the mortgage company so the rate was below market as always.

How did you add value to the deal?

As a one-stop shop for mortgages, real estate, and property management, we save our clients money and time by providing a seamless experience. With just one company and a single point of contact, we deliver unmatched synergy and efficiency.

Lessons learned? Challenges?

This property only needs a pool and furniture to get it to spectacular status.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes our entire team is inhouse and we do it all for you.