Primary Residence and Airbnb
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $205,000
Cash invested: $20,000
Sale price: $425,000
Bought as a primary residence, owner-occupied interest rate. Rented as an airbnb for many years whenever we left town.
What made you interested in investing in this type of deal?
We got a primary residence interest rate. We were able to subsidize income with airbnb as well.
How did you find this deal and how did you negotiate it?
Found this deal on the MLS. Lowest priced house in the area.
How did you finance this deal?
5% down!
How did you add value to the deal?
Sweat equity baby. Everything needed updating. Carpet, cabinets, countertops, yard. The thing this house had going was the most run down house in the nicest neighborhood. We could use everyone around us to help bring up the value and that's exactly what we did.
What was the outcome?
We made over 200K in equity and paid 3 years of mortgage with the airbnb proceeds.
Lessons learned? Challenges?
This was done over 9 years. It was our principal residence so that was OK but we wanted to do this over many other properties to gain the value of scale.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes lenders and agents.