Bought my vacation house first

[Scott Wilson]

Investment Info:

Single-family residence buy & hold investment in Asbury Park.

Purchase price: $350,000
Cash invested: $75,000

Purchased a vacation home two blocks from the Jersey Shore beach, boardwalk and downtown. Started doing summer rentals which turned into annual leases.

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

I loved the beach and this house was in the perfect location so I know it would rent.

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

I was looking for a beach house to buy and was ready with cash, then the financial crash happened and I had money in my pocket to buy a foreclosure in a great location.

How did you finance this deal?

I took out a traditional 30yr mortgage with 20% down. With other investments I was able to pay off the mortgage to maximize my cash-flow.

How did you add value to the deal?

I made multiple repairs and made the house ready for summer rentals.

What was the outcome?

Asbury Park was not a desirable shore town back in 2008. Now that Asbury Park is one of the hottest beaches/downtown areas on the Jersey Shore, I am getting $3400 a month with no debt.

Lessons learned? Challenges?

If you buy a house near the beach, make sure it has off-street parking