Assumptions of the business plan:

This opportunity is within our investment typology "Flipping Houses"; that is, buy, reform and sell as soon as possible. Obviously, we will try to ensure that the apartment is never empty and we will take advantage of the characteristics of this apartment to obtain the maximum possible performance, and that includes renting it, in the best possible modality, during that process.

As we have already mentioned, we are going to obtain vacation licenses, since they add value to the property, and will allow us to rent it under this modality when tourism recovers and we see it appropriate. In the meantime, we will opt for the half-stay rental (for months) that so far is working very well for us in our other opportunities.

What we will not do, in principle, is to rent it for a long stay, since that would devalue the property.

Our goal is to sell it as soon as possible and for this it is necessary that the apartment does not have loads of any kind, so that the new buyer decides what they want to do.

However, to carry out the business plan we must make a series of assumptions to obtain the project numbers. In this sense, we have drawn a temporary 4-year scenario, in which we start from the premise that the vacation rental will not recover at any time . A conservative assumption since, if we can rent the apartment on a holiday basis throughout the year at least in 2023 and 2024, the income and profitability of the project would increase considerably. (The month with the highest holiday income in Cádiz is the month of February, due to the carnivals).

In this way, the property will be rented on a half-stay basis during the periods from October to May , and will be rented on a holiday rental basis during the summer months from June to September (included) . The model that we are currently using and that is working.

Half stay rental (October - May):

To estimate the half-stay income, we have taken as a reference the income at which we have rented our current apartments, specifically our opportunity at “La Caleta” (smaller apartment without a terrace), rented for 530 euros per month.

Only the presence of the University of Cádiz, with more than 20,000 students and almost 5,000 employees among professors and other service professionals, causes a high organic and stable demand, which absorbs the entire supply.

Holiday rental (June-September)

Even this year, with the COVID crisis, vacation rentals this year have worked very well in Cádiz (in Brickstarter in terms of income it has suffered a drop of only 5% compared to 2019), and even in low season, we are having occupancy rates much higher than those we have in other areas such as Valencia, Seville, Malaga or even Alicante.

To estimate the income of the vacation months, we have taken as a reference the income obtained in the vacation regime in 2020, the year of the covid.