STR purchase in Palm Springs CA

[Tammy Skeath]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $580,000
Cash invested: $241,000

Contributors:
Amanda Jacobellis

Single family home purchased through a 1031 exchange in Palm Springs, CA. Purchased to use as a short term rental after renovation including putting in a pool.

What made you interested in investing in this type of deal?

I was in a 1031 exchange and couldn't find a MF deal. I met a local agent that had invested in this area and she introduced me to the area and the opportunities that were available in the STR space. The cash flow was a lot higher than I was expecting to get on any of my MF deals.

How did you find this deal and how did you negotiate it?

Worked with Amanda Jacobellis to negotiate deal. We put a high offer in early and put a cap on our appraisal. We lifted all other contingencies except loan.

How did you finance this deal?

conventional 30 year second home loan 20% down.

How did you add value to the deal?

renovating the inside slightly and adding a pool.

What was the outcome?

Will be putting it up on Airbnb in May.

Lessons learned? Challenges?

If you can pick escrow and title yourself, they can make a transaction smooth or very stressful-If buying something furnished, demand a full list before you lift contingencies.-put a cap on your appraisal pay back if you have waived appraisal contingency -Ask your good contractors for their references. -Stick to the price the comps say no matter what your agent says. Trust your instincts-Find other investors that are doing well in that space and imitate them.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Amanda Jacobellis (realtor) Tommy Barro (lender)