Updated almost 3 years ago on . Most recent reply
Lakehouse rehab into an AirBnB
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $515,000
Cash invested: $80,000
Single-family, lakefront, short term rental property.
Bank loan & personal cash funded. Launched Sept 1. Projected $30-35k annual net operating profit.
What made you interested in investing in this type of deal?
Backstory, we owned a single family rental from 2007-2017.
Around 2018-19, I began to travel a lot for business and started using AirBnB quite a bit. The entire model was interesting to me, so my wife and I did a test AirBnB listings with a private suite connected to our primary residence in 2021.
The income per SF was incredible compared to single family residential rental that we had previously owned.
How did you find this deal and how did you negotiate it?
MLS property. I was the purchasing agent.
How did you finance this deal?
Personal cash & bank loan.
How did you add value to the deal?
Managed property rehab, decor & AirBnB marketing.
What was the outcome?
Only 3.5 months active. Projecting $30k annual net operating profits (after paying monthly mortgage & service costs.)
Cash invested $90k (closing costs, repairs/improvements & adding furniture, TVs, appliances, etc.)
Cash borrowed: $463k
Hours invested: 500
Projected annual revenue $70k
Annual mortgage, taxes, insurance $37k
Annual maintenance & cleaning $20k
Annual repair budget $10k
Lessons learned? Challenges?
Vet contractors. Anticipate sloppy / delays in work.
Furnishing takes 2 weeks minimum.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was the purchasing real estate agent.
