FSBO -> Turn key, Mid Term Rental, returns $3600 - $4200/month on $400k

[Wesley Cramblitt]

I purchased this home in Rapid City in 2023 to be our primary residence,
and my wife and I turned it into a mid term rental last July.

It is fully furnished with:
4 bedrooms
2 bathrooms
W&D
Island bar in kitchen
Large TVs
Automatic locks
HVAC
Pool Table
Fenced Backyard
Fire pit
Propane grill
Double car garage

It has consistently rented for $3600 - $4200/month for 5 months with full coverage and no issues.

The problem for us is that we want to move to Northern Idaho (pricey) and build a home (20-30% down),
and we need the equity out of the house to do so.

(We really don't have much in it ~18% equity,
which is part of the reason I want to sell without
an agent to get more cash out of the deal)

I wanted to see if an investor on this platform would be interested
in a cash flowing, turn key mid term rental
with a short history ~5 months of rent.

From what I understand, during the Sturgis rally you can rent houses for
$5k - $10k/month. I didn't try this, but we easily rented for $3600 at the time

The winter months are the slowest, but there is a very large air base here to help with that (Ellsworth AFB).

We do also have a neighbor down the street with a similar rental that books ~$50k per year on Airbnb (years of data).

Without an agent my asking price is $400k. (I bought it for $375k in 2023).

With an agent, my price if $420k-$440k, depending on the fee.

Those prices barely return my down payment and investment in the home, so they aren't negotiable for me.

This is not the smartest move on my part considering the leverage potential from having this house, but I believe building in Idaho may be an even better move.

So, help me help you.

Address: 2202 Alamo drive rapid city, SD 57702.

Text or call me at: 251-490-1301
-Wes Cramblitt

[Don Spafford]

Here's a thought. On one hand, if you can keep it, that income will go a long way to help you qualify for a better loan for your new home or for other rental purchases. Do you have access to other funds that you may not have considered? Maybe a 401k? You are allowed to borrow from your 401k with no penalty, as long as it is repaid. But for a primary residence loan from your 401k can amortize it over a longer period than for any other loan from it. I borrowed from my 401k to purchase my first rental property and could only spread it out over 5 years, though I paid t back in 4. The interest gets paid back to yourself. You only lose out on any gains that money would have had in your 401k but as in my case, the appreciation of the property was way more valuable than the little gain that money would have had in the 401k.