First STR - Banner Elk, NC

[Kyle Jensen]

Investment Info:

Condo buy & hold investment.

Purchase price: $150,000
Cash invested: $40,000

We have long term rentals and have flipped a few houses, but this is our 1st attempt at a short term rental! We purchased a 2/2 condo in Banner Elk, NC in December 2021 and began full renovations in January. The property should be be ready to rent in May. Looking forward to the new adventure.

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

We visit western NC a few times a year and particularly love Banner Elk, NC and the year-round activities. We started looking for properties early last year that we could turn into a full time short-term-rental.

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

We worked with a local agent and found this deal on the MLS. It's a hot market up there, so there wasn't much negotiation, but with a cash purchase, we were able to get a slightly better deal.

How did you finance this deal?

Private money for the purchase, and HELOC funds for the rehab. We will refinance into a 30 year fixed mortgage after the renovations are complete.

How did you add value to the deal?

We are renovating the property to include a new kitchen, 2 new bathrooms, flooring, paint, and a mini-split HVAC system.

What was the outcome?

The renovations will be complete next month and then we can begin to rent via Airbnb, VRBO, etc.

Lessons learned? Challenges?

Managing a full rehab from out of state has it's challenges, but good communication and clear expectations are critical!