Long Distance Airbnb Wilmington NC

[Grayson Spittel]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $225,000
Cash invested: $26,000

Contributors:
Jesse Canady

Fantastic Short Term Rental in Downtown Wilmington, NC. This was our first partnership with anyone else - local boots on the ground that will manage the STR on a day to day basis. We brought 50% of the capital and I'll handle the financial side.

Owner financing, conversion from a 2/1 to a 3/2, rapidly growing area of town, STR permit from Wilmington, creation of new partnership, so many things to love about this one.

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

Super interested in the STR space. Wilmington is a place we're looking to expand our investments. Additionally, with another triplex under contract and the associated costs, a partnership in this format made perfect sense.

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

Partner brought this deal to my attention and had already figured out a rough plan forward - we were able to put our heads together and come up with a detailed plan.

How did you finance this deal?

Owner Financing - 10% down, saved us ~$20K in down payment immediately.

How did you add value to the deal?

We were able to permit an already existing bathroom and "bedroom" into a legit bathroom/bedroom that moved the house from a 2/1 to a 3/2.

What was the outcome?

Looking to be a fantastic investment and beginning to a strong partnership

Lessons learned? Challenges?

Even knowing what I'm doing in the Long Term residential investment space, STRs are a completely different area. This required a lot more front end work than any previous investment and a mindset shift in regards to tenant base. Additionally, setting up this first partnership meant ensuring that we have the infrastructure in place (credit cards/banking/operating agreement/business plan) to make sure we're ready to scale up from here!

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

https://www.airbnb.com/rooms/20037184?adults=1&location=Wilmington%2C%20NC%2C%20United%20States&check_in=2022-05-06&check_out=2022-05-08&federated_search_id=7e8ac740-94ec-4340-8b63-860c63e1c162&source_impression_id=p3_1641415736_p3l5dXc1qRMM8SNB&guests=1

[Grayson Spittel]

@Chris Levarek I appreciate it! Not quite Disney World, but a great area nonetheless! I appreciate the recommendation, I'll absolutely take a look. 

@Alex Bekeza 10% down on a 30 year term with a slightly higher interest rate than we could get through bank financing. Now that we've forced appreciation, following a seasoning period to simply have the management stabilized and see what the general flow of business is like, we'll look to refinance and pull our cash back out.