STR furnishing strategy

12 Replies

I am closing on a 2/1.5 condo in Destin Florida next week and closing has eaten up all my capital.  I need to re-do the floors but that's it for a rehab and I'm doing the work myself, It will bring me in a net profit of 1.5k a month conservatively so I know it's worth it but my question is how should I furnish it to get in on the market ASAP and cost effectively because it will have to be done with credit cards?

Most furniture stores offer financing, but don’t sign up for any sort of financing until after your closing date or it could cause issues with your new loan. 

Sounds like your getting over leveraged with no reserves regardless though. I’d personally look for a partner to do this deal with so I had reserves for a rainy day. But I have a lower risk tolerance.

Congrats on the purchased though. I close on my 4th rental (1st in FL) in PCB in June so we’ll sort of be neighbors. I’m using a combo of Amazon, Wayfair, and 13 Hub Lane to furnish mine.

In a pinch you can put the furniture from your own house in your STR. That's sort of what I did with my first one. My wife was selling her house she had before we were married. We put some of her furnishings in our first STR.

Thank you all for the good advice! and my wife is our reserve we have plenty but we refuse to dip below a certain threshold in case of emergency.  Thanks for the tips on new lines of credit prior to closing.

@Steven Gray

Be carefull of opening new credit accounts while you are going through your loan approval.  That will cause a problem.  Wait till after you close.  I used credit cards to furnish my beach house.  I didn’t want to dip into my savings and the opps account (things I didn’t account for or surprises).  I’ll have it all paid back in 6 months.  If i were not to be able to pay it back in a short time frame I would look for other options as already stated.

Good Luck.

Do NOT be afraid to go to good (high-quality) thrift stores. You'd be shocked at what you can find for pennies on the dollar! New sofas for $100. Armchairs for $25, buy some leather and get them recovered - Boom! You can furnish a place for a couple grand. Up grade later if you must!

@Steven Gray - I recommend updating if/when you can, but don't stretch yourself too thin.  An outdated property in Destin will still perform fairly well; however, if you have the ability to modernize, you'll stand out in the top 20% of listings in the area for sure.  It's amazing what a little paint, flooring, and furniture updates will do. 

Regardless of how you are funding your purchase, if you buy on the cheap, your reviews will suffer and you'll be replacing it all again in a year.  Don't do that.

We only put upper end furnishings in our cabins.  We find that they last a lot longer and the guests appreciate it.  All of our seating areas are genuine leather.  Our eating areas are always solid wood - veneers deteriorate quickly.  We also put wool antique persian rugs in all of our living areas.  We find that they stand up to just about anything and they give the look and feel of high-quality the moment the guest enters.  You can find quite good antique persian rugs on eBay.  The stuff from Lowe's will last you a season or two and it's toast.  

We bought a $2000 persian rug for the living room of our first STR in 2005 and it still looks fabulous. We also went with Ralph Lauren leather living room furniture, solid pine dining table and chairs, and log beds. They all are still in wonderful condition.

@Matt "Roar" Gardner good to hear from you. My computer died on me before I could reply. Thanks for the sound advice. Unfortunately the deal fell through the day of closing so it's back to square one. I've learned alot though so it definitely wasn't a waste. Looking forward to the next meet up.

Originally posted by @Steven Gray :

@Collin H. Thank you! I've heard your reputation in reviews on STRs is everything. I think I will make sure to have more capital in reserves and do it right the first time after the sound advice from everyone.

Steven I think that is prudent.  This is how we furnished a new construction back in 2017, and it looks as good today as the day we finished it.