First time homeowner to solopreneur with Airbnb

[Melissa C Waldron]

Investment Info:

Single-family residence buy & hold investment in New Haven.

Purchase price: $179,000
Cash invested: $30,000
Sale price: $204,000

First-time buyer of single-family residence who completely renovated a 1900 historic home and created an Airbnb property management business offering rooms to students, professionals, and tourists from around the world. I was a Super Host for 5 years before selling my house so I could move to the country.

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

I found this house after getting to know the neighborhood of Fair Haven and followed the house price going down in price over 6 months until it hit $149k and I offered $100k. I bought the house for $110K and had a federal grant to renovate the house completely.

How did you finance this deal?

FHA loan, 3.5% down

How did you add value to the deal?

Renovated the entire house, removed radiators and oil tank and replaced with natural gas. Added back deck, new exterior paint job, renovated all wood floors and restored entire home.

What was the outcome?

Was Airbnb host for 5 years, paid my mortgage for 5 years with that income.

Lessons learned? Challenges?

Challenge was a flat housing market in that neighborhood and I was one of the first people to sell my house for over $200k

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

Yes! Holly Webb from Coldwell Banker