Oak Island Beach Retreat
$1,250,000
target home price
$312,500
cost per share
$2,877 / mo
estimated costs
$3,125 / mo
monthly income
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CASH AT CLOSING PER SHARE
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Down Payment
$62,500
|
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Closing Cost
$18,750
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Reserve Fund Deposit
$9,375
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Total Cash at Closing
$90,625
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Details
We are two families in the Raleigh-Durham area of NC that met via Plum, and share a vision of a retreat on Oak Island (or, more broadly, the NC coast). Each of our families wish to use the property, and rent unused weeks. Together, we like the idea of a smaller group, and are seeking just one or two more co-owners to join us.
Both families like the idea of being close to water while not necessarily needing to be directly on the beach itself. There are some beautiful views of the sound and the intracoastal waterway that are also a short walk to the beach, and those might really fit the bill.
We're not in a rush, but also could see this happening in the near future if the right group comes together, and the right property presents itself.
House Usage
- 4 shares total
- 13 weeks a year per share
About the Organizer
Since there are two families represented in this group, we decided to each say a bit about ourselves!
Maari is an entrepreneur, the owner of an agency, a wife and a mom. She and her family have some experience with rental properties already, and likes the idea of co-owning a share of a larger property instead of adding another smaller one to her portfolio. She brings with her the lessons learned from the renting and maintaining other properties.
Marineé and Andrew moved to NC a few years ago. Marineé is a dentist and professor in the UNC dentistry school. Andrew owns an engineering design firm. Together, they own a rental property in another state that is going very well, and they want to get into owning property on the NC coast, and see co-ownership as a good means of getting the right kind of house at the right bite size.
Amenities
- Hot tub
- Waterfront
House Rules
- Only dogs allowed
- No firearms allowed
- Short term renting permitted
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Calculated Costs per Share
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CASH AT CLOSING PER SHARE
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Down Payment
$62,500
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Closing Cost
$18,750
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Reserve Fund Deposit
$9,375
|
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Total Cash at Closing
$90,625
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This is an estimate of the amount of cash needed when closing on the purchase of a property financed with a 30 year Mortgage at 8.0% interest rate.
Plum’s estimate includes 20% of the value of the house as a down payment, 6% of the value of the house for closing costs (including Plum’s Group Success Fee) and 3% of the value of the house for the initial reserve fund.
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ESTIMATED MONTHLY EXPENSES PER SHARE
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Mortgage Payment
$1,834
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Insurance/Taxes
$339
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Repairs
$260
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Maintenance
$260
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Utilities
$103
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Cleaning
$56
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Plum Subscription
$25
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Total Expenses
$2,877
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ESTIMATED MONTHLY INCOME PER SHARE
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Monthly Income
$3,125
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Total Monthly Income
$3,125
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A good threshold for rental property investment is the 1% Rule (source). It states that you should only invest in rental property if you are reasonably confident that the property can rent for 1% of the sale price per month.
We’ve included that assumption here. It is critical that the group validate pricing, rental history, and future rental projections of any specific property before proceeding with a purchase. You can explore rental incomes of any property with this free estimation tool at Rabbu.com.