Updated almost 4 years ago on .
Short Term Rental Property 3
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $242,500
Cash invested: $48,500
Short term rental investment with a business partner. This is in the same complex as our other two STR, so we will be able to expand and host larger families traveling to the area.
Secured owner financing on 80% LTV. Plan to refinance within 2 years and utilize the appreciation to help securing capital from our other two STR in the area. This is a 50/50 partnership.
Estimated cash flow based on current investments.
What made you interested in investing in this type of deal?
Previous experience
How did you find this deal and how did you negotiate it?
I have done business with the seller previously; he called and gave me first right of refusal to purchase before he put it on the market. Negotiated for seller financing and for the property to come fully furnished, including the hot tub!
How did you finance this deal?
Seller financing with 20% cash down
How did you add value to the deal?
Minor interior improvements, professional photos and better advertising for short term rentals.
What was the outcome?
Property acquired and went live for rent today! Took 24 days from close of escrow to live rental listing, though that could have been shorter had I not been traveling.
Lessons learned? Challenges?
Make sure the seller doesn't have any access to the property as quickly as possible after closing. Sounds obvious, right?
We are using one of the same service providers for the maintenance of the cabin and a few items were removed after COE, which by the letter of the law, is theft.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Myself and Joshua Click in Phoenix, AZ
