AirBnB to fund acquisition of long-term rentals.

[Mike White]

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $147,000

I purchased this property using a VA loan. My long term plan is to used this home as a long term rental, however I am currently using it as my primary residence (per VA rules). My current strategy is to begin using the property as a short-term rental, AirBnB. I then plan to use the profits to invest in more properties as long-term rentals using the BRRRR strategy. This is just the beginning as I am still working on furnishing the spare bedrooms to get them guest ready.

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

Necessity. I needed a way to add to my cash reserve as quickly as possible.

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

MLS, it was purchased as a primary residence with the plan to turn it into a long-term rental after a couple years.

How did you finance this deal?

VA Loan

How did you add value to the deal?

Minor cosmetic improvements.

What was the outcome?

Still in the early stages so no outcome yet.

Lessons learned? Challenges?

Find an agent that understands your goals.

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

I worked with a newer agent that still didn't fully understand my plan. He couldn't get past the idea I wanted to eventually turn this into a cashflowing rental property. I did not take my time interviewing agents.

[Mike White]

Deal update: I have been up and running for about a month and a half now. I have the room furnished and have had guests almost every weekend. I have only been opening the room for availability for the weekends since I am usually not there the weekends. This gives the guests some freedom and privacy . There is not a huge draw to Columbus, GA for short term rentals that commands high nightly rates. However, I have been getting about $28 per night which has worked out to almost $400 this month.