Selling a STR investment deal in Page AZ

[Duane Napier]

Hello BiggerPockets family & Happy New Year! I wanted to create this post to the BiggerPockets community as the first audience to showcase this deal. I hope this is the correct forum. I am selling a STR deal that I have been working on in Page AZ just minutes away from Lake Powell. The property is an off-market, 4 bedroom, 2 bath property that has been well-maintained as a single family residence. I live in Ohio and have worked out the major aspects of this deal with the owner who is a friend of mine. I am planning a trip to the property in January to examine the property with the owner and to provide feedback on the needed updates (including adding a hot tub). Based on our other STR's, we're assuming $30K will be needed in updates to launch as an updated STR (we hope this is a conservative number).

Buyer requirements: The buyer needs to be an experienced STR investor who is willing to work within the parameters of this deal and have the means to invest $250K. This is a legitimate deal and very qualified. I am not looking to get bombarded with people wanting details about this property who aren't qualified so please respect that. I have the key data points of this deal below, and if you are an experienced STR investor who actively manages your properties, feel free to reach out to me so we can discuss your experience and interest in this deal in more detail.

Deal Mechanics:

Home market value: $500K

Mortgage: $0

Pricelabs Revenue range: $45,000 – $61,000

AirDNA Revenue Estimate: $72,000

Updated Needed: Yes – minor kitchen updates, paint, décor, furniture, additional beds and a hot tub, possibly new 220 electric to the hot tub.

Home Condition: Good, no major repairs needed.

Seller Ownership: Seller to retain 25% ownership and be a silent partner.

STR investor ownership: $250K buys 75% ownership, payable to owner.

Title: At close the title will be placed into 1 or 2 LLC's (based on a Joint Venture or an LLC between the 2 parties), etc. what ever options makes the most sense.

Expectations: STR Investor will manage the STR on multiple platforms and split the NOI proceeds 75/25 with the seller, who will remain 25% owner.

I have committed to selling this deal to a qualified STR investor and will be very involved in the buy/sell to the right STR investor. I am helping this owner get into the STR market so they can learn and benefit from this deal financially as a minority owner.

Additional ask: I would like to get in contact with a real estate attorney and CPA that practices near Page AZ. There are aspects of this deal that will need ironed out as we get closer to the purchase involving a Trust and a pre-existing cost basis for the owner that must be managed properly for tax purposes.

Thanks in advance, looking forward to talking with qualified STR investors about this opportunity.