Doubled my portfolio! My 2nd STR ;)

[Hunter Hanlon Taylor]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $325,000
Cash invested: $30,000

This will be my second STR which is not yet operational due to a large number of renovations but will be rent-ready by the end of May. The goal is to cash-flow at least $1,000 per month which I think is very achievable.

What made you interested in investing in this type of deal?

I have a specialized loan that allowed me to purchase a property with certain restrictions and this fit the bill. The property was perfect on the inside and all I had to do was renovate the outside/add some high-demand amenities for the area. Most people around here do not run their STR's professionally which gives me an edge. The supply of STR's is high in this area but the location is perfectly centralized between major traffic-drivers which I think will still allow this to be profitable.

How did you find this deal and how did you negotiate it?

It was off-market, I have a great realtor and I myself have previous experience with this type of transaction.

How did you finance this deal?

0% down, no PMI, about $4400 in closing costs out of pocket, and around $25,000 in renovations out of pocket.

How did you add value to the deal?

By performing market research to figure out what guests are looking for in the area and add those amenities.

What was the outcome?

We'll see soon enough.

Lessons learned? Challenges?

The house under-appraised which was one major challenge, but I learned a lot about how that process goes. My home insurance premium also surpassed the limit set by underwriting which was another challenge I had to deal with. I had never heard of a home warranty until my realtor brought it up and successfully negotiated one for me, paid for by the sellers. Luckily I have learned a lot since my first purchase and was able to bring that experience with me.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

100%, would recommend Huntington for conventional loans and Tony Hughes as a realtor for STR's in the northern Ohio area.