Mountains are great STR's!
Investment Info:
Single-family residence buy & hold investment in Lake Arrowhead.
Purchase price: $553,000
Cash invested: $128,000
Short-term rental all done on Airbnb. I manage and host.
What made you interested in investing in this type of deal?
After looking at duplexes and cities out of state we started to feel getting something closer that I could manage would feel more comfortable. After researching with some friends that have mountain properties doing well it was worth looking into. Seasonal tourism is steady and being a destination location it attracts more than just the nearby cities. So far it's been perfect.
How did you find this deal and how did you negotiate it?
Found a wonderful realtor in the area that has been a local for 20+ years. Her knowledge helped us a lot. We lost a few of the first homes we offered on until we asked her exactly what do we need to do to be taken seriously as we are not all-cash buyers.
How did you finance this deal?
20% down and a 30yr mortgage loan
How did you add value to the deal?
Honestly, at the end of multiple counteroffers, it came down to our credit scores, money in the bank, and if we were the most trustworthy to not back out in the middle of escrow. I think that's happening a lot with site unseen offers, etc.
What was the outcome?
Completely smooth escrow, not one bump in the road.
Lessons learned? Challenges?
We learned we needed to be more aggressive if we wanted property and also not to push when the property doesn't feel right just because you may be desperate after missing out on a few. We think if we buy homes that we ourselves feel good in and that has value it will translate in the way we manage and host it. So far that is really working out magically.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Lisa Bolanos of Elevate Realty-Crestline to Big Bear, Darlene Mitschke of The Money Store