Updated about 5 years ago on . Most recent reply
Airbnb with potentially huge payoffs
Investment Info:
Single-family residence buy & hold investment in Indio.
Purchase price: $356,000
Cash invested: $60,000
Bought a 3/2.5 SFR on a gold course next to where the Coachella and Stagecoach Festivals are. Did some cosmetic work and added a pool and back yard oasis. Now short term rent it out primarily on airbnb.
What made you interested in investing in this type of deal?
After going to Coachella myself and realizing the incredibly high nightly rate that the are commanded during the festivals and the relatively high rate for the rest of the year, it was almost a no brainer.
How did you find this deal and how did you negotiate it?
Im a huge numbers nerds, so I knew the price point I was looking for. After a few weekends of looking and not finding anything that was quite the floorpan and area I wanted, our agent showed us the newly constructed homes in Indian Palms Country Club. After you look at quite a few properties and find exactly what you don't want, its easy to know what you want the minute you see it.
How did you add value to the deal?
We put in a pool, created a back yard oasis, and even did some cosmetic custom work on the inside to add some flare to the house and make it our own.
What was the outcome?
On the market and renting. Even making a huge return the first month of it being listed during this pandemic.
Most Popular Reply
@Joe S. why not work with property manager who will lease property ( triple net)from you for a guaranteed return to you which would be higher than a LTR. At 100% LTR occupancy,after taxes, ins. and maintenance what is your net % ROI?
If property managers want to share profits of a STVR give them the risk of running a business by leasing property to them while you take a guaranteed return!