Updated about 4 years ago on .
San Antonio Luxury AirBRRRRnb
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $265,000
Cash invested: $60,000
1930’s historic home with a converted garage. We are renovating it to be a 7+ bedroom luxury Airbnb.
What made you interested in investing in this type of deal?
I have been looking for properties that fit both the BRRRR model and work as a short term rental. This property is in a nice historic area of town and is close to the Medical Center and downtown. With 7+ bedrooms we should be able to sleep 20+, so the pool of comparable properties is pretty small, but mighty. Expected annual revenue if $140k.
How did you find this deal and how did you negotiate it?
My agent actually found this off market. Some other investors were planning to flip it but decided to sell instead. My agent knew one of the contractors involved in the project and got me connected with the sellers. We signed a simple contract (my typical wholesaling contract) and were off to the races!
How did you finance this deal?
Hard Money Loan
How did you add value to the deal?
It is a full gut job. We are reconfiguring the kitchen layout and some other spaces. It is a 5bed/2.5 bath main house right now and will become a 5bed/4 bath, with 2 of those bathrooms being en-suites. The garage conversion doesn’t have a kitchen right now and will be made it to a proper 2/1 with a living room and kitchenette.
What was the outcome?
We are just starting construction but plan to invest $210k in to the renovation with and ARV of $650k.
Lessons learned? Challenges?
Pick your lender wisely! More lessons TBD
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Corridor Fundig rocks!