From Primary to Short-Term Rental
Investment Info:
Single-family residence other investment.
Purchase price: $223,500
Cash invested: $75,000
Purchased as a primary residence to start as I moved to Oklahoma. Converted to short-term rental as COVID hit. Managed to still rent as short-term to people who were forced to work or travel for work in the area. Officially launched as Airbnb in January 15, 2021.
What made you interested in investing in this type of deal?
The property sits on a golf course and is at least 9 miles from the closest active community. I noticed people using the golf course came for weddings or to hang out for a "guys weekend" So, using all my extra house-hold furnishing, and researching what items were needed for a high end Airbnb I furnished the property and started to rent as there was nothing else in the area.
House continues to have a very high use rate.
How did you find this deal and how did you negotiate it?
I lived in CA and was looking to purchase out of state as I am retired from the fire service and law enforcement. Needed a change. My fathers family is from OK and I have always enjoyed and property is affordable.
How did you finance this deal?
Standard 30 yr fixed with my sister providing cash for the down and closing.
How did you add value to the deal?
Updated the interior to open concept. Tile floors/moved an interior wall/new kitchen/ paint. Then added concrete all the way around the house to allow access to renters who have mobility issues.
What was the outcome?
Property is continuously and receives very good reviews
Lessons learned? Challenges?
Finding contractors / realtors etc. when new to an area. Be patient.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, with a small community the realtors were generous with their knowledge and contacts.