Fayetteville Short Term Rental

[William Timmons]

Investment Info:

Single-family residence fix & flip investment in Fayetteville.

Purchase price: $187,500
Cash invested: $75,000

Bought a rental close to the University that needed a little work, but sat on a large lot with enough room to add an ADU in the back. We decided to turn house into an AirBNB once it was complete and plan to start construction on the ADU in March.

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

We were needing a place to live temp while we were comleteing construction on our home. It is one mile from our major university and had the perfect set up to build an ADU.

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

It had been listed on the MLS for $205k and sat for almost 45 days. We offered $185k and settled at $187,500.

How did you finance this deal?

We did used a commercial loan.

How did you add value to the deal?

We repaired walls, painted the inside of the house, replaced appliances, moved HVAC to attic which allowed space to add laundry room.

What was the outcome?

We are cash flowing roughly $1200/mo as a short term rental. We are starting construction in the back for the ADU in March and should be able to cash flow an addtional $750/mo when completed.