First Investment - Short Term Rental

[John B Clark]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $609,000
Cash invested: $300,000

STR using a PM. Monthly cashflow is estimated after all expenses.

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

Initially was interested in STR because we could also use it as a vacation home for our family when not in use by renters. Then, I saw the cashflow potential and possibility for financial freedom, and it kicked off my interest in property investing.

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

Found through MLS, and used an agent who is also a friend with lots of construction experience who also owns a couple of his own investment properties.

How did you finance this deal?

Financed through conventional 30 year fixed with about 25% down.

How did you add value to the deal?

Redo 2 bathrooms adding a shower to one that didn't have it, redid all flooring, painted inside, replaced rotting siding, new kitchen counters, backsplash and appliances, opened up a wall, and added a pool heater.

What was the outcome?

Lots of interest and good comments so far.

Lessons learned? Challenges?

I'm not sure I would have put as much money down or started with STR if I were to do it again. I probably would have started with some long term buy and holds, gotten the income from those, and moved on to more, possibly doing an STR later. This one is tying up lots of our capital due to renovations, high amount down, and needing to furnish it, thereby slowing us down quite a bit.