Condo with Cashflow

[Katie Linder-Jesse]

Investment Info:

Condo buy & hold investment.

The Greenhouse on Gregg is a great investment that often serves the University of Arkansas visitor population. This 1 bed 1 bath condo is rented out 162 nights a year and covers all the costs of running the unit and debt services. This property has been a great experience and we have learned a lot from it over the last several years.

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

With the University of Arkansas just blocks away we knew there would be a great need for rental houses. We realized the data indicated there was a gap in short term rental housing in the 1 bed 1 bath category. We found this existing short term rental just needed a few tweaks to help it make more money.

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

Because I'm a licensed real estate agent, I found this opportunity through my weekly searches and knew it was in a prime location and held a coveted short term rental license, which has become a hot commodity in the area.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

When we purchased the property it was being listed as only a one bedroom with maximum of two occupants, we knew with a few fun features to help the photos pop and a very nice hide-a-bed couch we could charge more and get more nights rented.

What was the outcome?

Those simple adjustments increase our rental income by $8,000 that year.

Lessons learned? Challenges?

Use a few extra tools to maximize profit with dynamic pricing and automatic emails. These services are huge savers of time and increase your returns in the long run.

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

Absolutely, contact me and I'd be happy to help you find the perfect rental near the University of Arkansas when you are ready.