The purpose of this blog is to provide educational entertainment exploring the possibilities of unconventional investments. Unconventional investments will be defined as any asset that has the ability to generate positive cash flow, no matter what the level of risk. The method of education may include interviews with experts in their fields, in conjunction with an actual cash investment that will follow the process from start to finish and provide quantitative results. I plan to include investments in real estate, precious metals, currency, antique cars, tax liens, racehorses, collectibles and an assortment of other purchases.
For my first entry, I am covering a real estate investment previously purchased on April 11th, 2011 and is still on going. Future investments will be detailed with a more hands-on approach to content, but I wanted to include this as part of the regular updates that include the good, the bad and the ugly. In purchasing this property, there were 4 criteria that I required:
1. Small, low maintenance condo or townhouse
2. Management on site
3. On the beach
4. Purchased for cash (no mortgage).
A condo located on the beach in St Pete Beach, Florida met all the requirements. A college friend and I split the investment 50/50. She and I purchased an efficiency unit for $83,000 in an all-cash deal. This investment has been quite a learning experience. I can’t say enough positive things about having the right manager on site. Our manager deals with all renter issues and every broken and missing item (which are many and frequent). Even with the headaches, this has been a profitable investment so far. We generate between $12 to 15K in gross yearly rent and I believe that the current value is at least $105,000. In addition, it serves as a great getaway vacation during the off-season when it is not typically rented.
the view from the condo
The plan is to display each asset purchased in the following manner with regular updates:
Asset: St. Pete Beach Condo
Date Purchased: 04/11/2011
Costs: $83,000 + $1,000 in settlement charges – my costs @ 50% ownership = $42,000
Cash Flow Generated: $12K-15K year (gross)
Pros and Cons: low vacancy during season due to beach location
Thanks for reading….
Jeff Kahn CPA
This blog is for educational entertainment only and under no circumstances should be construed as advice regarding investments. Past performance is no guarantee of future results. Accordingly, this blog is protected by copyright laws of the United States and international treaties.