Rock Island Short Term Rental

[Catherine Cleveland]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $66,000
Cash invested: $70,000

Short term rental. 85% occupancy. About to refinance out 80% for another investment.

https://www.airbnb.com/rooms/46630739?source_impression_id=p3_1640348850_mkJM9F56%2BDeWXuPl&guests=1&adults=1

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

Wanted to get into STR. I just had a feeling it would work perfectly as an air bnb and it was so cheap that I figured it would be a less risky project to learn and create a system.

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

Friend owned it and was selling FSBO. I happened to run across it on facebook. I just reached out and offered to buy it.

How did you finance this deal?

Paid cash for quick close. In the process of a 80% LTV cash out.

How did you add value to the deal?

converted it to STR.

What was the outcome?

great cash flow. 33% cash on cash return unleveraged.

Lessons learned? Challenges?

Learned about STR and that I want to find a few more in my area! Overall great investment for money and for education. Challenge was trying to get it automated. STR can be very labor intensive so it's forced me to try and automate and be hands off even though I'm close so I can recreate this system in a location more remote.