Updated over 6 years ago on . Most recent reply
6 unit building turned Airbnb success
Investment Info:
Large multi-family (5+ units) buy & hold investment in Fort Lauderdale.
Purchase price: $582,500
Cash invested: $125,000
I purchased a 6 unit building in my neighborhood and spent 5 months on the renovations. I then set each unit up as an Airbnb, and now it’s a successful full-time short term rental.
What made you interested in investing in this type of deal?
I was ready to take the next step, as I already had a few other rental properties, and one of them was a very successful Airbnb.
How did you find this deal and how did you negotiate it?
I am a Realtor, so I found it the day it went on the market. I knew it was a great deal, so I offered full price immediately, and went under contract that day.
How did you finance this deal?
Commercial loan 30% down.
How did you add value to the deal?
I remodeled each unit, along with the exterior, adding about $125,000 to the building.
What was the outcome?
Full-time very successful Airbnb business.
Lessons learned? Challenges?
If I could go back, I would make a few changes. Probably spend less money in certain areas and more money in others.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was able to find the property as I am a Realtor. I did not love the commercial lender I used.
Most Popular Reply
Heidi, this is awesome. I would love to do a project similar to this. I have two STRs in Nashville, but also know that STRs are a lot more stable in Florida. Did you partner with anyone for the down-payment or were you able to fund it yourself? I'd love to see the Airbnb listings. Also what was your budget for the renovation and are you going to refinance to pull your money out?
Great stuff here!