SFH Second Home in Lake Tahoe, STR

[Kathleen McDowell]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $675,000
Cash invested: $675,000

Traded in Vacation rental condo for SFH. Put $125k into the remodel. STR on Airbnb/VRBO earning $33,000 profit a year, while spending 2 months of the year there as a holiday home. Doing a cash out refinance this year to reinvest into other properties.

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

I wanted to have a larger vacation home to accommodate our guests, but rent it out to cover our costs.

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

I found it by canvasing our current neighborhood and offered $45k below asking because the home was in need of a complete remodel.

How did you finance this deal?

Cash.

How did you add value to the deal?

Remodeled the home to get it ready for STRs. It appraised for $1.275m in May 2022.