Update to our first airbnb and why we sold it

[Rhonda McDaniel]

Investment Info:

Single-family residence other investment in Tulsa.

Purchase price: $64,555
Cash invested: $6,200
Sale price: $154,000

Second BRRR and First Short Term Rental
Purchased on Construction loan with $27,569 construction hold back.
Extra Rehab costs (plumbing, A/C, and roof unknowns): $10,000
Down payment and closing costs : $13,656
Cash out Refinance (cash back to us after fixed and rented): $17,452
Total Out of Pocket after refinancing: $6,200
Cash flow varies by month as this first year we are doing a Short-Term Rental. Winter months have not been good in Tulsa, but summer months saw cash flow of up to $600 month...Sold in August after realizing we are not in the best neighborhood for an airbnb and we needed cash for other investments.
Lesson learned: get those construction quotes during inspection periods. Go with the more expensive quote for construction hold/back costs.
Time Frame: Bought at auction.com...bid in November and won...Quite Title suite followed paid by seller...closed March 1, 2022...Finished rehab July 1, 2022. Opened AirBNB July 4, 2022. Sold August 2023.

Lessons learned? Challenges?

Ask more questions from the electrician. I thought I was getting old knob and tube out, but what I got was a wires tied into old knob and tube. The electric all worked, lights and switches. Knob and tube came up on the inspection and seller requested it removed in TRR negotiations. I made it right by rewiring the house ($5,000 more)...Lessons Learned Check for knob and tube and get it out of the house.

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

This is the first house I bought with myself as the REALTOR. I sold with myself as the REALTOR...Great savings there. I'd love to work with you to buy or sell your investment property.

[Nicholas L.]

@Rhonda McDaniel just curious, why not keep as an LTR?