From Curious to STR Owner
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $199,000
Cash invested: $50,000
Bought as a personal lake home with the thought of it possibly being a STR. Welcome COVID and welcome visitors! Our goal was 33% booked YOY and to date we are approximately 47% booked YOY. Revenu is about 10% over operating costs. Not an investment to retire on, but the place pays for itself and current value is over $400k!!
What made you interested in investing in this type of deal?
We wanted a place to "get away" that didnt break the bank and I was just learning about the STR market.
How did you find this deal and how did you negotiate it?
Was looking at higher priced properties then considered "what if it didnt rent, could we afford the mortgage?" and dropped our expectation to find the near perfect one for substantially less. Had been mostly vacated the last 3 years and negotiated about 10K off list price and got the jet boat, appliances and the dirty carpet!
How did you finance this deal?
bought as a second home
How did you add value to the deal?
Added flooring, new HVAC & water tank, nicely furnished and made it "home away from home".
What was the outcome?
Its been a steady rental for over 2 years. We've taken in more rental as of date than we paid for the house.
Lessons learned? Challenges?
Would have negotiated harder to get it for less. But, it really is the near perfect place - lakeside, fantastic view, and nearly off the grid.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Worked with a local agent who has good experience in STR and the area. Being an agent myself, I know what I dont know and our agent was fantastic.