Chapter 09
Making the Decision & Due Diligence
The decision framework is straightforward.
✓ You're the Right Buyer If:
- You can transact without conventional financing (cash, portfolio loan, or private flood + non-conforming structure).
- Your hold period is 7+ years, giving you the runway to weather cyclical softness.
- You have modeled total cost of ownership against realistic rental income actuals, not just projections.
- The permanent development cap is a feature of your thesis, not an obstacle you're hoping gets resolved.
✗ You're the Wrong Buyer If:
- You need NFIP flood insurance to finance the purchase.
- You're planning a 2–3 year hold and expecting appreciation to make the deal work.
- You're treating the 4x4 access as a vacation novelty rather than an operational system.
- You're buying at maximum leverage in a market where a forced sale can take 100+ days to execute.
The Due Diligence List
Before writing an offer, commission a well water test (arsenic, coliform, nitrates, saltwater intrusion) and a septic inspection. Pull 2–3 years of documented rental history actuals from the current property management company. Obtain private flood insurance quotes from multiple carriers before contract, and confirm the property's specific CBRS unit designation with the U.S. Fish & Wildlife Service.