All Forum Posts by: Kari Rau

Investment Info:

Single-family residence commercial investment investment.

Purchase price: $525,000

Cash invested: $130,000

Purchased a 9 acre single family ranch north of Brighton. I rent the house to a family and the shop and land to a business to store equipment. After purchase I installed new flooring throughout, repainted the entire home, updated lighting to LED, updated master bathroom, replaced old furnace, air conditioner, and propane with a energy efficient geothermal system that heats, cools, and heats domestic hot water. There is no more propane or gas used on the property. Bills have averaged about $30/month since the system was installed. My tenants love comfort of it and I love the safety and cheap utility bills. The new system will pay for itself in about 3 years when compared to propane. After utility rebates and 30% tax credit eligibility the system rivaled the cost of a conventional system.

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

The single family home with land was attractive in that I knew I could rent some of the other buildings and land to a business in need of space and rent the home too. Those two incomes made the deal palatable because of the higher costs of owning an acreage.

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

Found it on MLS.

How did you finance this deal?

30 year commercial loan with 25% down.

How did you add value to the deal?

2 rent incomes. Updated flooring, paint, light fixtures, master bath, and entire HVAC system to energy efficient geothermal.

What was the outcome?

Cash flows about $1700/month. Very happy with the Geothermal system as it will last longer, be cheaper to operate, safer because there is no onsite combustion of fossil fuels, eliminated the use of propane, and reduces our carbon footprint.

I pay internet and basic cable for my STR.

I installed it end of April and still have not replaced the battery yet. The app also lets me know battery life which is nice. Hope that helps

Also the Hub 2 and Schlage lock were purchased at Home Depot for around $300 (I think) and my husband installed them. There is no monthly fees either and the Hub can be used with other devices.

For my short term rental I use the Wink Hub 2 with a Schlage key pad. It has worked great. I can change lock codes easily and remotely and give different codes to different people (i.e. the cleaner has her own code). The app is great as it allows me to see if the door is locked (the cleaner has actually left it unlocked a couple of times and I'm able to lock it remotely) and gives me an activity log and specifies what code was used. Great to see if someone is checking in early or late. It's been great.

Thank you Shannon for your input. I understand the reasons for having it and plan on getting it when I become active on VRBO. I'm asking what others have used as the 2 quotes I've gotten are pretty expensive or if there are any supplemental policies out there. Surely other STR owners are getting quality STR insurance that is not 40-50% higher than 'regular ' home insurance premiums? Perhaps I'm wrong. That's the info I'm looking for.....

I only have home insurance on the property but my insurance man said if I decided to rent on VRBO I would need a policy geared more towards STR and it is costlier. That's why I was wondering what everyone else is doing for their rentals. And if there are any supplemental policies.

I'm new to the STR scene with a recent purchase in Colorado. Curious as to how many of you purchased specific STR insurance vs. regular home insurance and who you are using. Also, are there additional STR policies out there to supplement my home insurance that is more affordable than using STR insurance? It seems pretty pricey!