Short Term Rental Purchase

[Niki Covalt]

Investment Info:

Single-family residence buy & hold investment in Sun City West.

Purchase price: $240,000
Cash invested: $260,000

STR rental, future retirement home. All income pays bills and invested in updates and repairs.

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

My parents live in Sun City Grand, and we became interested in retiring in AZ. We have invested in STRs in the past and like it.

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

We used an AZ realtor and Zillow to find the property.

How did you finance this deal?

HELOC on our residence to offer cash.

How did you add value to the deal?

We were willing to do as-is and all cash.

What was the outcome?

Our offer was accepted for about $10K less than asking price.

Lessons learned? Challenges?

In the retirement community market, a cash offer isn't necessarily a strong offer to the seller. A majority of the sellers don't owe on the property and can wait. Or the property is part on estate and the owner representative is waiting for more money.