All Forum Posts by: Matthew Kresky

Looking for a boots on the ground partner to assist with my investing in the Fayetteville area. I currently have two beautiful, cash flowing short term rentals and a third under contract. I will compensate for you time and provide as much education and mentorship value as I can. My current partner and I have done wonderful work together and unfortunately he is taking a step back from real estate in general. I am open to any sort of future partnerships or other mutually beneficial arrangements.

Hey @Christian Latimer,

The property is cash flowing very well so far.

We made out around $12,000 for our properties. This includes around 10k for all of the furnishings and an extra 2k for staging and other miscellaneous items. It really helped that my wife is a trained interior designer and our boots on the ground partner completed a lot of the labor intensive efforts. We sourced everything from Amazon or local second hand stores. 
Hope that helps and good luck with your STR. Let me know if you need any help with the design or want to take a look at our basics wish list we have put together on Amazon.

@Myka Artis That is very interesting. I am a member of the BRRRR facebook group so I will look for the details there.

@Myka Artis Can you recommend any resources where I can learn more about those benefits? 

Just want to see if this is a viable option and if anyone has experience with it.

I own a single family home that is operating as an AirBNB. I have a partnership LLC which is being used to manage the property, buying furniture, paying contractors, etc.

Does it make sense to draw up a long term lease agreement renting the property from my personal name to the LLC? One immediate benefit I can see from this is on the lending side in that mortgage brokers will be able to use the long term lease as income towards the debt of the property. (Something they are not able to do with the short term rental income)

I know this would also have tax ramifications as well. Is anyone more knowledgeable on this subject? 

@Amanda Gisonni Kittredge We moved out for reasons completely unrelated to real estate. But having the luxury to rent out the entire property and have rent cover the mortgage, the heloc payment and other expenses made that decision much easier. 

@Steve W. Yes, that is what I have found. Fayetteville is home to Fort Bragg, which is by population the largest military base in the country.

@Grayson Spittel I'm using Horton Stay Rentals, a small but growing family operation.

@Justin Melendez All of the data I am pulling is coming from AirDNA but that is mostly to run income projections and to ensure the daily rate is set correctly. The decision for an AirBNB came from paying attention to hospitality and other related trends all pointing towards a shift away from traditional travel and more towards the unique experiences. 

Thank you @Justin Melendez! I must give credit to my wife 100% for the design. We have financed our first two properties in the area with a conventional 30 year mortgage and personal funds for the renovations and furniture. Not sustainable but it got us going.

In my opinion Fayetteville has a unique need for short term rentals not as a vacation destination but rather to act as a family home while in town visiting a soldier. Also, it is almost exactly halfway between NY and FL offering a refuge along the I-95 corridor. 

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $100,500
Cash invested: $30,000

Buy and hold property purchased and converted in to a beautiful short term rental property.
https://www.airbnb.com/h/thebirdsnesthome

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

We see great potential in short term rentals in the future and this market in particular has a unique need for them.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $402,000
Cash invested: $30,000

Single family home with fully separate basement apartment. This property started as a house hack renting out the 3 bedrooms in the basement individually. After 1.5 years of house hacking and many renovations (funded by the tenants) this property had appreciated greatly. We were able to take out a HELOC and used that to buy two additional properties. This home is now fully rented and cash flowing nicely.

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

The opportunity to purchase an undervalued home with many avenues to force appreciation.

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

MLS. Made an offer with an escalation clause in order to slightly out bid a cash offer.

How did you finance this deal?

Used a HELOC from a previous home as a down payment.

How did you add value to the deal?

Full kitchen and bathroom renovations. Added a bedroom in the basement.