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Updated about 3 years ago on . Most recent reply
First Airbnb Purchase here in Louisville, Kentucky
Investment Info:
Single-family residence other investment.
Purchase price: $275,000
Cash invested: $20,000
Contributors:
Andrea Dewey
Purchased this four bedroom home as an airbnb. It has a fifth bedroom that is missing an egress window (counts for airbnb!). We bough for $275,000, put in about $15,000 in updates, and furnished for $20,000. We've been up for a week and half and have just over $20,000 in bookings.
https://www.airbnb.com/rooms/52235577?source_impression_id=p3_1640107175_ZX6bdXDqC6EzQIEZ&guests=1&adults=1
What made you interested in investing in this type of deal?
Cashflow! We did the math, we only really need six of these to get fat fire.
How did you find this deal and how did you negotiate it?
Found on MLS. We got $10,000 in closing costs and $7,000 check for repairs.
How did you finance this deal?
Traditional financing with Bobby Clifton at CrossCountry Mortgage.
How did you add value to the deal?
Basement had an extra bedroom that would count as a bedroom for airbnb (didn't have egress window).
What was the outcome?
Over $20,000 in bookings in the first two weeks!
Lessons learned? Challenges?
Don't let perfection get in the way of progress. Make it nice enough you'd enjoy it, but it doesn't have to be as nice as your personal home. DON'T ORDER EVERYTHING ON AMAZON! Building everything sucked!!! We will buy things locally that are prebuilt next time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was the agent on our deal. Nick Borders did the inspection. Bobby Clifton did the loan. Joe Worth was our contractor.
Most Popular Reply
Congratulations! Such an exciting journey! Completely agree on the "Don't order everything on Amazon!" We have also found that Ikea is a great place to buy furniture. Let a college student spend the day assembling everything for you. They will enjoy the money and you will enjoy the time you didn't have to spend putting the furniture together. Win win!!