3505 Island Drive

This North Topsail Beach property stands out for its large lot, unobstructed sound views, and move-in-ready condition, making it well-suited for investors targeting premium STR demand in a coastal market. The home’s historical STR performance and current bookings provide a degree of income certainty, while the high-confidence underwriting metrics suggest robust cash flow and a nearly 20% cash-on-cash return under modeled assumptions. The property’s appeal is further enhanced by flexible transition options, including a seller leaseback during peak season. The primary caveat is that returns are highly dependent on continued strong occupancy and ADR, which should be validated against evolving market conditions and local STR regulations.

North Topsail Beach is a coastal North Carolina market with established demand for short-term rentals, particularly for properties offering water views and modern amenities. The area attracts both vacationers and seasonal renters, supporting a premium rental strategy. While the market has demonstrated resilience, investor returns remain sensitive to regulatory changes and broader tourism trends. The property’s historical STR performance and current bookings provide a solid foundation for income projections, though ongoing monitoring of market dynamics is advised.

The property is situated on a rare oversized lot, offering privacy and unobstructed sound views that are likely to appeal to vacationing families and groups seeking a tranquil coastal experience. The residential character and updated features enhance guest appeal, while covered parking and storage add operational convenience. While detailed location-specific demand signals are limited, the combination of lot size, views, and modern updates positions the property favorably within the local STR market. Confidence in neighborhood-specific demand is moderate, based on available context.

At a $740,000 purchase price, underwriting metrics indicate strong income potential, with an estimated $8,694 in monthly STR income and $3,049 in monthly cash flow, assuming a 62% occupancy rate and $461 ADR. The modeled 19.8% cash-on-cash return is attractive for the segment, driven by a 25% expense ratio and no management fee assumption. These figures are high-confidence, but returns are sensitive to occupancy and nightly rate performance, as well as ongoing operating costs. Investors should validate assumptions against current market trends and confirm the sustainability of historical STR income.