Project | Brickfy

San Telmo II

Platform: BRICKSTARTER
Type: LENDING

Closed for investment

Scheduled

General Information


LENDING

REAL ESTATE

BRICKSTARTER

BB

Monthly


Financial Information


€138,506.00

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€0.00

€5.00

4.80 %

4.85 %

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--


Important Dates

1461

2021-07-19

2025-07-19


Description

Information about the apartment

BrickStarter is 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.   


Why invest in this apartment?

  • 29% disccount over current market price, selling price below current market price
  • High IRR 10.26%, taking into account de midterm rentals
  • High cash on cash return 4,82% that will increase as soon as we can rent the property as vacation rental the whole year long.


Project summary

It is a property that we are going to acquire from an investment fund with a strong discount on the initial sale price.

It is located on the first floor, which will avoid possible restrictions on vacation rentals in the future. It has 52 square meters very well distributed, in one double room, a kitchen integrated into the dining room, a bathroom, and a large private terrace.

The master bedroom has a large custom built-in closet, and it is naturally ventilated. The living room has direct access to the private patio, which gives a lot of ventilation and light to the apartment.

The distribution is perfect for both mid-term and short-term rentals. Even for long-term rentals, but this is not our goal.

It is a very versatile property, with a capacity for up to 4 people, perfect for couples, small families, etc.

Location, Location, Location…

The best thing about this apartment is the location. Just 100 meters from the university, the vice-chancellor's office and the Gran Teatro de Falla, and just 8 minutes from both La Caleta Beach, as well as the various clinics and hospitals.

The location is perfect since the historic center is the neighborhood most in demand by tourists, students, and officials. The walking distance to the main points of interest, according to Google Maps, is:

  • University of Cádiz (medicine): 1 minute (110 meters)
  • University of Cádiz (vice-chancellor): 2 minutes (180 meters)
  • San Rafael Clinic: 3 minutes (250 meters)
  • Catholic University of Cádiz: 4 minutes (350 meters)
  • La Caleta Beach: 6 minutes (550 meters)
  • University of Cádiz (economics): 7 minutes (600 meters)
  • Women's Hospital: 7 minutes (600 meters)
  • Hospital la Salud: 9 minutes