Updated over 4 years ago on . Most recent reply
The Shore Beach Houses
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $1,000,000
Cash invested: $250,000
Small Resort with 5 cottages 1/2 Mile to the beach. www.theshorebeachhouses.com
What made you interested in investing in this type of deal?
It's 5 minutes from my house and after an out of state nightmare of investing this was something we can be proud of.
How did you find this deal and how did you negotiate it?
We found part of it on the MLS and when we met the owners we made a deal to buy 4 properties with 2 duplexes, 1 stand alone, and a vacant multifamily lot.
How did you finance this deal?
3 separate residential mortgages
How did you add value to the deal?
Besides upgrading the units and the property we have developed a successful Airbnb, VRBO business and built up our own brand through our own website. We are 5 time Super hosts. We purchased the property below the real estate value and got the vacation rental business for free. Also, applied for a LOMO to get it out of flood zone. It is now in X which is way better to future investor.
What was the outcome?
I had a business appraisal done on the property last year and it came in at $1,500,000.
Lessons learned? Challenges?
Short term vacation rentals take work. This is not a passive business unless you hire a property manger. We decided to run it our selves to learn the business.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, her name is Annette Forsberg and she has been very good and helpful.
