Case Study: 1128 Sunset Drive Luxury Vacation Rental
When you’re considering investing in a luxury property, it doesn’t have to be huge to earn you large amounts of revenue as a vacation rental.
Below we detail what we were able to achieve for a 2 bed 2 bath condo in Kelowna.
What We Have Achieved for a Luxury Condo on 1128 Sunset Drive
As mentioned, 1128 Sunset Drive is a 750 square foot 2 bed 2 bath condo. Note that it doesn’t have a lake view or a design aesthetic either. It has 2 twin beds in the secondary bedroom and a king-size bed in the primary bedroom. It also has roughly 900 sqft overall.
This condo, last year (2020), brought in $70,000 of gross revenue. The goal for this condo post-pandemic is to reach $100,000. Currently, we’re on track to hit $80,000 for 2021.
Note that we were booking July/August at well over $600/night plus 7-night stays. Even with the pandemic we had a record-breaking summer for this property in 2020 and anticipated another record-breaking summer for 2021 as well.
Other Opportunities for Investing
For this building, there is another unit available for sale on the 4th floor which does have a lake view, but it does need some updates.
Whereas the nice part about the 2 bed 2 bath condo is that although it doesn’t have any intentional design in the unit, it has been updated.
A lot of Airbnb guests right now have a discerning taste and are looking for something fresh and clean and we do have another property in this building that’s larger with a lake view but it doesn’t earn the same on our scorecard. Thus, we’re making some updates like some new photography to better achieve the goals we’ve set for it.
The reason we’re talking about this is that it’s also a good comp for the Aqua development by the Mission Group. Aqua is going to be on the waterfront in the lower Mission neighbourhood of Kelowna, so not the same location appeal yet. However, it will be when the entire development is done we think that will bring more amenities to the area. The appeal for the Aqua location-wise to sell it is that it’s a little more comfortable for families to be down there versus the downtown core. There’s a lot of walkability, great paths, and Mission Creek to check out. There will also be a few cafés and breakfast spots as well. This new development is at the top of our lists and we can’t wait to add several units to our portfolio. If you are one of the lucky ones to secure a unit in Aqua submit your details today for a free income report.
