San Telmo II

We are back! With a brand new opportunity in order to maximize our revenues just before the holiday season. As you know, the summer season includes the period from July to August, and now that tourists are back, we must hurry up in order to have this new opportunity ASAP. It took us many weeks of market research to find this property and this is probably one of the last COVID bargains.

This opportunity is similar to one of our last opportunities “San Telmo I”, the one in which we got the highest yield for our investors ever. We are buying this property from a bank with a high discount on the initial starting price, specially taking into account its location and typology. This is a perfect apartment for not only short-term rentals but also for mid-term rentals as we know from our previous experience is “San Telmo I”.

We are assuming the COVID crisis is not over yet:

Although this property is perfect for tourists, and we will get all the required permits as soon as possible, our goal is to rent it as a mid-term property: this is our main assumption in our business plan, in order to avoid future effects of the COVID-19.

Once the COVID crisis is over, we will rent it as a vacation rental property the whole year, and the final project yield will increase, but for the time being we must be conservative on our assumptions.

As we know there is a large demand in Cadiz for mid-term rentals as the land is scarce, but is holding a large University, (more than 25 thousand people), several Hospitals and many Government offices. Although is not as profitable as short-term rentals, it is still a great solution for the low season. To summarize, in our business plan, for the whole 4 years, we have assumed that:

• from October to June we are going to rent it as mid-term property
• from June to September we are going to rent it as a short-term property.

Obviously, we will rent it as vacation rental property the whole year as soon as it is more profitable than mid-term rentals. In this scenario, the yields will increase, but for the business plan, we have not assumed that.

Reasons to invest in this new opportunity:

Main reason to invest in this property are:

• Very high demand for mid-term rentals due to the scarcity of land, the presence of 2 hospitals, the university with 25 thousand students and teachers, and other Government centers in just 3 square km
• Possibility to rent it as a short-term apartment when we consider it appropriate during the whole year.(It will increase the total yield)
• Location: located in the historic center of Cádiz, the favorite area of tourists and students as it is very close to the universities and several hospitals. There is a very high CURRENT demand for students and workers.
• Typology: despite being a small house, due to its distribution we can obtain 2 double rooms. It also has a large terrace that also gives it plenty of ventilation and light.