First Airbnb in the Hudson Valley
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $172,000
Cash invested: $40,000
I bought this cottage to use and #airbnb out when I'm not there. It was a total fixer upper and I did the classic thing of buying the worst house in the best area. I've spent the last 4 months fixing it up and I'm excited to start hosting some guests! The major transformation included popping out the living room ceiling, to create a loft space instead of an attic. It created a 2nd sleeping space for guests, thus more heads in beds!
What made you interested in investing in this type of deal?
I needed a place there that I can use myself when I'm up there. So this made perfect sense to then do the reno so I can airbnb it out when I am not there.
How did you find this deal and how did you negotiate it?
A client of mine passed on it and I asked if I could put in an offer. She said "definitely." It took a very long time to negotiate because the seller was very difficult to get ahold of. So start to finish it took about 6 months to close.
How did you finance this deal?
Regular financing.
How did you add value to the deal?
I created a 2nd bedroom essentially and added about 200 square feet.
What was the outcome?
After the acquisition costs and reno costs, I now have 85k more in equity on the conservative side. :)
Lessons learned? Challenges?
I learned a lot about buying a country house. There were 2 wells and I needed to get the sulfur water treated. I had to build a second well house for the new well because the one on the property was for a well that ran dry. I also had to get all the electrical updated, including the lines and poles that run up to the street. This wasn't just cosmetic. I had more mechanical work than expected but learned how to tackle it and built a team so that the next one will be easier.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Me! I'm an agent! :)
