Short term rental

[Jessica Parker]

Investment Info:

Single-family residence other investment.

Purchase price: $315,000
Cash invested: $100,000

single family residence where we built a guest cottage to use as a short term rental. Plans of eventually turning our SFR into a short term rental as well. my husband is a handyman here in the area and we were able to do all of the finish work ourselves!

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

Having our home already and being a quick 5 minute drive to the beach in an upcoming vacation market it just made the most financial sense to us.

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

We didn't really have to negotiate anything since we were already the owners of the main residence...it was just doing the research to get the guest house built.

How did you finance this deal?

cash

How did you add value to the deal?

We added value by doing as much of the work ourselves as we could. My husband is very handy as that's what he does for work. So we were able to save ourselves a lot money by doing it ourselves. We also don't believe it would have been done as nicely if we would have hired it out either.

What was the outcome?

We have a 2 bedroom 1 bath guest house that should bring in at least $3,500 a month in profit off of a $100k investment.

Lessons learned? Challenges?

Lots of lessons learned for sure. Next time I hire framers I will be going behind them and checking their work. I will be measuring everything to make sure it is being done correctly. They will not get final payment until it is fixed.
Challenges were getting things to work after framing was not done properly. You definitely learn to pivot. lol

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

I'm actually a realtor here locally, it has definitely been helpful having the knowledge.