Scope of improvements included:Full interior updates: new flooring, interior paint, lighting, granite countertops, and updated appliancesAddition of high-demand short-term rental amenities: game rooms, custom bunk beds, hot tubs, swimming pools, and putting greensProfessional interior design and full furnishing to optimize guest experience and nightly ratesThese improvements were executed with the objective of maximizing long-term performance, increasing appraised value, and creating differentiated offerings within the Hot Springs vacation rental market.Refinance & Financial PerformanceUpon completion of renovations, we partnered with a local commercial lender to refinance the portfolio.Combined appraised value (ARV): $2,601,000Approved loan amount: $2,200,000 (cash-out refinance)After retiring the hard money loan, the transaction resulted in a net cash return of $300,470.51, which represents $118,181.09 more than our original down payment—effectively removing all invested capital from the project.TimelineThe full cycle—from acquisition through renovation and refinance—was completed in 174 days.OutcomeThe result is a portfolio of three fully renovated, amenity-rich lakefront properties, each now positioned to perform as premium short-term rentals with strong long-term appreciation potential.

They want to know you won’t blow the rehab budget, stall out, or panic when something goes sideways.Once I had one project under my belt with clean documentation, lenders stopped questioning my ARVs and started competing for my business.A few lessons from that first deal:• Show up with a real scope of work• Know your comps better than the lender• Bring a contractor who’s licensed, insured, and organized• Present the numbers like a business, not a hopeAfter that, funding becomes a systems game instead of a confidence test.

Many first time homebuyers struggle to have any skin in the game in the first place.

I will be adding a loft in one of the bedrooms, pavers on the outside patio area to relax, grill and play games.

No security deposit but I will be asking for a move in non refundable fee. 2 tenants left so remaining tenant wnats his gf and her cousins to move in. 

I understand things aren’t always equal but if personal partner is going to become business partner I would want them to have some skin in the game.

Use your own title company, send the contract and assignment terms early, and don’t play games with daisy chains.

I currently own a few long term rentals in Southern California so I am not a stranger to the real estate game, but definitely a stranger to the midwest market.

For the average homeowner who seeks this due to a lack of funds it is likely a bad idea because they often make emotional purchases and attempt to sell, move on a whim without understanding that appreciation is usually a long game. 

For me, the game-changer was tightening up my turnover automation.