PadSplit Short-Term Rental

[Rafael Mora]

Investment Info:

Single-family residence buy & hold investment in Riverdale.

Purchase price: $163,800
Cash invested: $62,000

Short term rental property rented by week. Converted an 4/2 into an 8/2 with average rent of $160 per week. $32k downpayment + closings costs (15%) and $30k contractor work to build out extra rooms and furnish each one before launch.

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

Massive cash flow relative to traditional rentals.

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

On market property, worked with a local realtor with experience in these type of homes (owns PadSplit homes himself).

How did you finance this deal?

Traditional Finance plus cash saved for the downpayment/construction

How did you add value to the deal?

$30k worth of work to build out extra rooms and furnish each of them before launch.

What was the outcome?

$2k average monthly profit after paying mortgage and ALL other expenses.

Lessons learned? Challenges?

Acquire more fast. Challenge, cash constraints.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, worked with local lenders, realtors, title attorneys, and property managers all familiar with these type of investments.

[Robin Simon]

Congrats - PadSplit is a great company and these are rock-solid investing strategies in a tougher market like we're in