Updated almost 3 years ago on . Most recent reply
Short Term Rental - DFW, Texas
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $636,000
Cash invested: $170,000
My 2nd STR in the Arlington Entertainment District. Performing very well as it is in the upper/luxury tier of available STR's in the area, and we designed it quite nicely in my humble opinion!
What made you interested in investing in this type of deal?
First STR gave me the confidence to do another in the same area
How did you find this deal and how did you negotiate it?
Off the MLS (funny enough) - financing fell through with previous buyer, so I offered full price with partial waiver, knowing I could cash flow well. Appraisal came in slightly lower than asking price, so we negotiated down.
How did you finance this deal?
HELOC out of primary + cash reserves. Only used small % of HELOC amount as I didn't want to over leverage myself.
How did you add value to the deal?
Design and added amenities. House was already brand new, so minimal renovations were needed.
What was the outcome?
Outcome has been stellar so far. Occupancy is high, and cash flowing well.
Lessons learned? Challenges?
Trust your yourself in the process, as doubt will inevitably creep in when relatively new to investing. Buy in STR zones where there are strict laws and a finite amount of homes so oversaturation is never a concern.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
N/A
