Single-family residence buy & hold investment.
Purchase price: $177,500
Cash invested: $75,000
Single family residence (3BR,2BA) that was renovated and fully furnished in Garner, NC (a suburb of Raleigh, NC). The property is used as a STR (i.e. AirBnB).
What made you interested in investing in this type of deal?
The ability to force appreciation by doing some renovations in the kitchen, bathrooms, and living area.
How did you find this deal and how did you negotiate it?
Found the property on MLS. Property had been under contract recently and the sellers were motivated.
How did you finance this deal?
Conventional mortgage loan. Cash-out refinanced approximately 8 months after purchasing the property.
How did you add value to the deal?
Open concept, new flooring (LVP), new paint, new finishes, redesigned the kitchen, upgraded HVAC, and curb appeal.
What was the outcome?
We now have a beautiful property that has performed well on AirBnB (~$1000 in cash flow).
Lessons learned? Challenges?
Gave us confidence. Review the financing terms carefully and think long term (i.e. how fast can you refinance).
Congrats! I'm in Raleigh but do STRs out in Western NC. Would love to do some STRs locally. If you're ever intersted in connecting and swapping stories, love to meet up. Best of luck with this one in Garner.
Nice looking house @Hayden Breckenridge ,congratulations!
Congrats on the deal @Hayden Breckenridge ! Beautiful place as well. Do you manage yourself or have a property management company work your Aribnb?
@Luke Trovinger Thank you! We currently have two listings in Garner, NC that we manage ourselves on AirBnB: this property (an entire house listing) and we house hack our primary residence (private room(s) listing).
Congrats!! The BRRRR strategy with the intent to STR is my favorite play in the STR playbook space right now. Keep it up!
@Myka Artis Thanks, and I agree with you. There is so much upside to BRRRing and then converting them to STRs.
@haydenbreckenridge, Congrats. Solid work. I'm new in the game and just bought my first property (buy/hold) in the same area. I hadn't thought about STR's in this area much, but you're now the second person I have seen be successful. I know a guy who's making 5k a month in Apex. I didn't think the demand was there for these. Would love to pick your brain one day. Nice work.
@Greg Pawluk Thank you. I was certainly surprised that there was enough demand for STR in Garner. Most of our guests are coming to visit family (i.e. holidays, weddings, etc.) in Raleigh/Garner. Feel free to send me a direct message if you would like to grab coffee or beer sometime.
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