Kevin purchased his second rental property in Chincoteague Island, Virginia. In this episode, Kevin shares about his second rental property.
Kevin Daisey (00:01):
I’m about to close on my second rental property. What’s up everybody, Kevin Daisey here. So getting crazy into real estate, this all happened pretty quick, but I’ve now purchased my second rental property. I’m actually closing in about a week or two, so I don’t have it yet. That could change. But I feel pretty good about it. So I have bought a second rental property been looking for months as 2022. I’m recording this. The market’s been insane. People want no inspection, cash offers over. And I was just not willing to do that. And I wanted to get a deal. So I was looking in one area, which is like a resort beach town, which the prices are just going through the roof. It’s crazy. Things are on the market for one day. And so I was just like, I, I, I can’t bring myself to, to lose like that.
Kevin Daisey (00:56):
And my one property is actually in that same place. It’s called Chincoteague. It’s hard to say Chincoteague Island, Virginia. And that’s where my one property is now. I bought that in 2020 when their, you know, market was not going crazy yet. So I got lucky with that and that’s turned a great profit already this year in two months, it’s paid for itself and, and producing income. So we were looking for another place and I got my wife really involved and engaged and she’s been interested. We had the money saved away already for a down payment for a certain amount of money. And we just kept looking and we’ve been kind of frustrated. I’ve talked to so many realtors and looking at all these properties, but what we were doing was focusing on that one area. And so one day I started to look in other areas and there’s a, a resort like a ski resort mountain area in Virginia called wintergreen, super popular.
Kevin Daisey (02:01):
It’s got wineries and breweries and of course, sea and snowboarding and things were the kids, things like that. So it’s a very popular area. I love going up there. We enjoy going up. There we go up there a couple times a year and rent a place ourselves. So we actually spend money to go up there. And so I was like, oh, this might be a really good place to buy. And when I didn’t realize though, it’s four seasons where I’m talking about where my, where my other place is, it is basically summer. You’re gonna make money in the summertime, which you can make a lot, but you, you have a lot of months where you’re not making anything. This other property that I’m buying right now is four seasons. And I’m talking about you’re making money all the way around, like, so I have a friend that has a property there and made more in may, in the mountains, on a ski resort than he made in the winter summer, super popular
Kevin Daisey (02:58):
There’s mountain biking, wineries, the breweries, like I said, so there’s so much there to do. And then it’s right next to university of Virginia. So then you have all the students and parents and stuff like that coming in. So it just opened my mind and my eyes to say, wow, okay. There’s a four season place that people wanna go to all year round. How much can we make there? And so I’ve heard nothing like really good numbers. One pro tip, if you’re listening and you’re thinking about getting a rental or Airbnb VRBO O where you’re using both of those softwares you can look at air DNA. So it’s airdna.com I believe. And that’s going to let you look at the place that you’re trying to buy. It shows you other people that are using Airbnb on their rentals and how much they’re actually making, how many nights they have rented.
Kevin Daisey (03:54):
And you can start to draw a conclusion and do your numbers to say, okay, if I buy this for this much, my payment’s gonna be this much. In our case, we have a condo and it has HOA fees. So I gotta calculate that in there. What’s my total expenses. And then I look at what others are doing with the same size place and how much money they’re making. And then I can say, Hey, this is gonna be profitable. Let’s do it. So that’s what we did. We got our stuff together. We made an offer on a Saturday, right when they were having an open house and they had tons of interested buyers, but we got in first, we already had our stuff together where I assume everyone else had to go back home, probably wait till Monday, their mortgage people, and then prepare an offer.
Kevin Daisey (04:42):
We had it all ready to go. We did it on a Saturday and we were able to get locked in. We, we had the first offer and the only offer and we got the property. So I did a full ask with no inspection. It’s a condo. So you don’t really need one with the 2000 earnest money down. So they knew we were serious and we got it fully furnished. And the appraisal just came back at 25,000 more than I paid for it. So we, we, we have the equity in 2022 in the summer equity with a fully furnished place, ready to rent right now. As soon as I close on it, we’re gonna have it on the market. So second property I’m super stuck you know, very excited and looking forward to the next one. As soon as I can get some money saved back up, bam, next property. We’re gonna keep rolling.