Potential STR Opportunity

[Brandon Foard]

Long time follower of this page and we’re ready to find our first real deal. 

We’re not exactly sure what avenue there is for this scenario, so we’re looking for any possible situation that you could suggest. 

We've located an off market property that we would love to purchase for STR and personal use vacation.

It's a 1/1 located in the north Broken Bow area and after talking to a couple of STR investors and a management company we believe it would be a 30-45% occupancy rate and more than pay for itself. Some suggest 50-65% and if that's the case, it would be a great deal for us. It would be a great CoC return.

The seller would sell for 60k, realistically it needs 30k to get a marketable/desirable condition for a STR, less for personal use.

We have 15-20k cash to make it happen, but not sure what avenue to go about getting it done. 

How do hard money lenders work if all in was 90k turn around and I had 20k up front? I suspect a hard money lender wouldn't cover the purchase and I cover the rehab, then I BRRR to pay them off?

While conventional financing would work for us to get the deal purchased if we put our 20k down, we wouldn’t have the money for the rehab and therefore wouldnt have it in a rental condition. 

We would be doing a lot of the rehab work ourselves as that’s where my background is. How long to hard money lenders usually lend for? When is payment due? Are there monthly payments owed, or is it all due at a set time? 90 days? 120-180 days?

So many questions, just don’t know how to go about getting it done…