3/2 and 2/1 non-traditional duplex, creative financing for STR...

[Chris Seals]

Sellers are motivated as they're building their home out of town and ready to move.

They owe $190k on 8.5% mortgage, current payment $1700. Their current place is a SFR with a mother-in-law type quarters attached to the back. Bigger house is 3/2, about 90% done with a rehab (needs some paint, some exterior siding work). The 2/1 has been their primary residence and they originally were renting out the 3/2.

The area has several AirBnBs, within walking distance of many businesses in Farmington, MO. Hard to gauge year-round vacancy, but September/October looked to be 5-15 days booked at nearby places, going anywhere from $125-250 a night. Neighbors in the area are renting for $2000/month. AirBnB month-long stays for travel nurses also scare the same figure. There are also several Furnished Finder properties right next door that stay booked solid for $1000/month. My thought is acquire the property, furnish both units, and post on AirBnB. In slow season potentially list on Furnished Finder as well to try to get them occupied through slow season. We have friends that co-list with AirBnB, and my intent is to leverage their experience and have them co-list to avoid property management.

Sellers would like $240k but their biggest personal goal is not having a car payment after they move (they wouldn't disclose how much they have on the auto loan). 

They were open to cashing out their equity and doing a sub2, but there's no way I can lock up that much capital this early in the game. Just getting started. I have 25-30k to play with until I can do a few more wholesale deals.

Any suggestions? Am I trying to squeeze water from a stone, this being one of our first deals in the works? Many thanks in advance.