First Airbnb in the Hudson Valley

[Mackenzie Grate]

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! :)