Lake House Airbnb on Lake Barkley

[Rob Bergeron]

Investment Info:

Single-family residence other investment.

Purchase price: $149,900
Cash invested: $14,900

Contributors:
Brett Grigsby

Purchased a new lake house airbnb on Lake Barkley. The property is fully furnished and made $40,000 in revenue last year. We are converting garage to living space (adding heating/cooling, ping pong, tv, couches, hot tub, etc). We should be all in at $200k and generate roughly $80,000 a year when all is said and done.

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

Crazy cashflow and low entry level price.

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

I'm on top of every waterfront property listed in the state of Kentucky. I wrote a full price offer 15 minutes after it was listed.

How did you finance this deal?

Hard money with Annex Capital.

How did you add value to the deal?

Making it a more fun airbnb rental with hot tub, more comfortable beds, tvs in every room, and games.

What was the outcome?

Closed on it, about to start the renovation.

Lessons learned? Challenges?

If you source a good deal people are going to try to snag it, sometime shadily. We made them honor the contract. We also had issues finding an appraiser because the area had been hit by multiple tornados.

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

I represented myself. Andy Love and Trey Gossom helped us with hard money loan. Brett Grigsby partnered with me on this and will also be managing the airbnb.