Likened to the income of a hotel with three units in the rear building (a 1/1, 2/1 and a 4/2) and a front house (5/3) that satisfies the needs of larger friend and family gatherings, this investment is positioned to cater to the full range of vacationers' needs.
Since you're considering Wildwood NJ as your investment destination, you likely know how the population simply explodes EVERY Memorial day through Labor Day. That alone has allowed the current owners to profit nicely every year for 20 years!! But wait, three years ago, they realized there was a real demand for short term housing over the winter months. Since then, this investment property has INCREASED its revenue by over 23%, or $40k/year! With just four units to keep an eye on, this investment has generated north of $170k/year for the last two years and topped $198k in 2021!!
It would be valid to assume there are a lot of hands on needed. A lot of time and sweat equity to accomplish these numbers and have a 4.8 star rating on Airbnb. The truth is, the current owners moved to Florida 18 years ago haven't even been to the property in years. They have a great local property manager that gets a monthly stipend of $1500/month through the summer and $750/month through the winter. (Her arrangements would be available to convey if interested).
This great income producing property is being sold as a business. The income from this business will determine the sales price. ALL inspections are more than welcome, but due to the constant occupants, now year round, inspections and walk-throughs can only occur after the sales price has been negotiated and under contract. Any items discovered by said inspections can/will be negotiated after the fact. There's no risk to you as the inspection period by law will provide an exit in the event you see anything you don't like. Moreover, the extra winter income has allowed many impressive upgrades. This partial list shows improvements that have been done over the past couple years:
All four AC units replaced (three mini-splits and one central), both HWHs were upgraded to high efficient tankless units, house plumbing converted to pex, remote thermostat AC controls, remote door locks, water shut off with remote leak detection, interactive exterior security cameras with voice, and many other cosmetic upgrades that have earned all the units a 4+ star rating on airbnb. 2022 looks even better!! With the demand so high, the rates were raised by 10-20% (depending on the unit size), bringing the expected total income to approx. $230k!! Even more exciting, the rear building that holds three units has a flat roof (about seven years old) This will be the perfect place for a roof top deck with more ocean views!! Imagine the higher rates that will be achieved with this highly sought after option!!!
Expenses minus debt and capital improvements for 2021 was $55,572, equating to the NOI of $143k. All of this information is backed by tax returns. (@8% CAP rate, asking $1,787,500 at 2021 numbers. 2022 guided numbers is $2,070,000).
Last but not least, there is already many reservations on the books for this summer. Either paid in advance directly or non-refundable through airbnb, the income is baked into the sale. Not a cash buyer? Your debt service is covered with a tidy profit as you turn the key to this unique, one of a kind opportunity!!
Here are the links to three of the units.
Click around and look for openings in our calendars. You'll see the success going on here!
https://abnb.me/4JQH7g8rhpb
https://abnb.me/ozVYrj1rhpb
https://abnb.me/yJe9Kp5rhpb
Broker/agents, add your commission to the sell price. KEEP IN MIND, THIS IS AN OPERATING BUSINESS WITH CONSTANT CHANGE-OVERS THROUGH THE SUMMER, OFTEN SAME DAY. WE CANNOT ARRANGE FOR SHOWINGS UNTIL WE RECIEVE POF'S AND AGREE ON A SALES PRICE PRE-INSPECTION, THAT CAN BE ADJUSTED IF INSPECTIONS REVEAL ANY ISSUES.