Condo Mid-Term Rental
Investment Info:
Condo buy & hold investment.
Purchase price: $110,000
Cash invested: $10,000
Sale price: $140,000
As a young Marine on my first deployment, I used my down time to work out and consume every piece of Bigger Pockets content I could find. Our only expenses were tobacco and energy drinks, so I was able to put away more money than I ever thought I'd have in my bank account. I wanted to put it to work. I purchased this condo and gave it a little bit of love. I furnished it and listed it as a mid-term rental on AirBNB and Furnished Finder. This was my experimental rental property, and I was shocked at how well it performed! I averaged rent at 2200-2500/mo for approximately 10 months out of the year. On a studio condo! My primary guests were traveling professionals and students. I very rarely if ever had issues with guests. I managed it remotely while I was in the military and paid family to do the turn overs and repairs. I recently sold to free up some capital for a new venture.
What made you interested in investing in this type of deal?
Low barrier to entry - the only thing I could afford!
How did you find this deal and how did you negotiate it?
Zillow. Used a family real estate agent to help with negotiations. I was out of the country and could not be involved in the process. I closed before I ever saw it in person!
How did you finance this deal?
Conventional loan and 20% down.
How did you add value to the deal?
Basic cosmetic renovations, plus furnishings.
What was the outcome?
My average ROI per year of owning was approximately 13-15%. I was very happy with the outcome, especially with it being my first rental.
Lessons learned? Challenges?
Plenty. Managing remotely was my biggest challenge.