3 Bedroom House, Second Short-Term Rental
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $100,000
Cash invested: $10,000
3 Bedroom 2 bath home used as a short-term rental
What made you interested in investing in this type of deal?
I had already successfully started one short-term rental. I wanted a second one.
How did you find this deal and how did you negotiate it?
My next door neighbor asked how much to rent the short-term rental we already owned since she needed to move soon. I asked if she wanted to sell her house. She said yes.
How did you finance this deal?
Commercial 5 year ARM. We also put lien on the first short-term rental we bought since we created equity there. This allowed us to obtain 100% financing for this house.
How did you add value to the deal?
Changed the flooring, HVAC, painted throughout, and furnished it.
What was the outcome?
It is still operating as a successful short-term rental.
Lessons learned? Challenges?
I learned the power of creating forced equity in a real estate deal since it allowed me to use that equity to obtain 100% financing on this deal.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Union Bank, now First National Bank.
