First STR Purchased and Operating in less than 30 days!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $205,000
Purchased with intent of doing a Short Term Rental
https://www.airbnb.com/rooms/42249035?s=67&shared_item_type=1&virality_entry_point=1&sharer_id=71674751&unique_share_id=6f237e4d-b50d-484f-a4c2-6bbf41a2032e
What made you interested in investing in this type of deal?
I wanted to add a STR to diversify my LTR business. As a Realtor, I constantly see a need for Short Term Housing with clients who sell but cannot find a place to buy as fast as their home sold. Also, the location of this home is prime as it is very close to Grand Park which brings in families for sports tournaments.
How did you find this deal and how did you negotiate it?
Listed on MLS. Made a cash/as-is offer to negotiate the price down. Allowed seller flexibility with closing date. Asking price of $225K, agreed on purchase price of $205K.
How did you finance this deal?
Credit line for initial purchase, refinanced with a 30 year mortgage 30 days after closing with 30% down. Rate of 4.6% which was awesome for an investment property.
What was the outcome?
Took possession on 1/23/2020, used the first week to have the entire house painted (ceilings, trim, doors, walls) and floors cleaned. Took two weeks to furnish/decorate and knock out the rest of the maintenance items from the inspection. Had it listed on 2/13/2020 and had my first booking the weekend of 2/21. Was very proud that I was able to turn it around for rental within a month as that was my goal.
Lessons learned? Challenges?
Assembling furniture is very time consuming. I ordered all furniture online (Wayfair, Amazon, Sams) and had it delivered directly to the house which resulted in more cardboard than I could imagine. Purchasing homes during the winter gives you more power to negotiate, plus I was able to put in a lot of hours getting the house ready since my real estate business is slower at this time, yet had it listed in time for peak summer bookings.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was the Realtor :-), Katie Hughes at Caliber Home Mortgage was great to work with.
