Case Study: Blue Ridge Hollow
"Blue Ridge Hollow" boasts one of the best outdoor spaces in the area. Relax in the hot tub or cedar barrel sauna, nap in the daybed, then enjoy a meal at the oversized outdoor table or sip wine around the fire pit.
- Category : Wintergreen
- Website : https://tinyurl.com/Blue-Ridge-Hollow
An Owner’s Perspective
Blue Ridge Hollow is a 5 bed, 4.5 bath house in Wintergreen that had previously been lightly used as a second home. It had never been rented out, so there are no “before” revenue figures on this property. The house was in pretty good shape and came furnished with pretty good furniture, but the revenue difference between “pretty good” and “great” can be massive in the short term rental market. So I ended up replacing about half the furniture, added a hot tub extension to the lower deck, updated the living room, converted the lower living room to a game room, and added a barrel sauna and EV charger.
Before
After
Before
After
The Numbers
The purchase price in Feb 2023 was $660k. After renovation and furnishing, I was all in for $152k. The annual revenue is pacing toward $155k, with annual expenses of $97k (including mortgage payments), leaving $58k in annual profit and a 38% cash-on-cash return. If you add in gains in equity from principal pay down and 2%/yr appreciation, the return goes to 51%. Additionally, I had a tax write-off of $168k from a cost segregation study.
Annual Revenue
$155k
Annual Profit pre Tax
$58k
Cash on Cash Return
38%
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