Lake access STR

[Lisa Loesel]

Investment Info:

Single-family residence buy & hold investment in Pewaukee.

Purchase price: $290,000
Cash invested: $59,500

Fully renovated 2 bedroom, 1 bath lake access property. It was renovated in 2022 & used as a short term rental for a couple of months. I purchased a few additional items to make it more desirable as an STR (paddle boards & outdoor area). I listed it on Airbnb late in February 2023 and within a few hours had a request to rent it March-April. Given the seasonality of our market, I will plan to midterm rent during the off peak season and short term over the summer months.

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

It's fully turnkey. I don't mind doing updates and furnishing, but everything was done on this property. I bought it off market, so no competition and I feel good about the price. With current expenses I can still LTR and having that as a back up option made this a good investment.

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

I found this deal through networking. Another Realtor in my office was planning to list it, I asked to see it early & put in an offer in right away.

How did you finance this deal?

I have a good relationship with a local commercial lender. For my last few STRs I've used them. Rates are decent & the loan process is unbelievably easy compared to conventional lending. I provide an estimated rent roll & a PFS and their committee meets to discuss and approve. I also like that the property has to be in an LLC.

How did you add value to the deal?

I didn't do much. I added some fun water toys & an outdoor area. Planning to put a hot tub in as well.

What was the outcome?

It's currently midterm rented until Spring. Over the summer months I'll be switching back to STR.

Lessons learned? Challenges?

In this market, finding the off-market deals is the way to go. I have a decent sized network in the area & I need to do a better job of utilizing it.

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

I'm a broker so I represented myself & asked the seller to take the buyers side commission off the purchase price, which they agreed to. My lender is amazing & makes the process very easy. I will likely only be obtaining commercial loans for investment properties going forward.