New build Short Term Rental - Table Rock Lake

[Jake Boyer]

Investment Info:

Single-family residence other investment.

Purchase price: $467,278
Cash invested: $75,000

New build STR on Table Rock Lake just outside Branson MO in the Jax Creek Development. This single family home is 4 bedrooms 4 bathrooms and is located in a community of STR's. The contractor also has a property management company who will manage the properties in the community and offers additional ammenities like free kayaks, paddle boards, etc. for tenants in addition to boat rentals and more. This process started out a little rough as the builder died from Covid shortly after we signed the contract. Things got delayed, communication fell off, and the stress level went through the roof, but we're back on track now and hoping to be done by the end of May and start taking tenants!

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

Intended to be a passive investment, but things changed when the builder passed away and communication became a challenge with the new players. My partners and I stepped up and started putting pressure on them to perform and we're back on track now. Always been interested in the STR space and found this as a great opportunity to get into one.

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

Found through one of my partners on the deal who has other STR's in the area

How did you finance this deal?

Each partner put up money to purchase the lot with cash and the builder financed construction and will get it financed once complete.

How did you add value to the deal?

Building new

What was the outcome?

Still in progress, but should be complete next month!

Lessons learned? Challenges?

Communication is absolutely KEY! Make sure to establish tangible targets to achieve and keep a timeline with their commitments to ensure things get done as promised.

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

No

[Valerie Budd]

@Jake Boyer

We have been managing and owning nightly rentals in the Branson area since 2005 and know the market and area very well.  We were the largest outside PM company at Jax Creek.  When the internal management company saw our growth and amount of bookings we had for our owners in Jax Creek they removed us from the allowed management companys.  Since then they have blocked other PM company's too - after the  owner Jay's passing.  The owners that had to leave us one of them sold and the other is certainly missing us.   Ask the management fees and to look at owner statements.  You may also want to talk to other existing Jax Creek owners for more details.