1st Remote STR Investment - 4B2B SFH w. in South Florida

[Sunny Huang]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $650,000
Cash invested: $100,000 (down payment + closing costs)

4 bedrooms + 2 bathrooms single-family home with an in-ground pool. In the process of rehabbing and getting it ready for short-term rental.

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

Strong cash flow potential + tax benefits (depreciation to offset W2 income) + appreciation upside

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

On Zillow through For Sale by Owner (I set up alerts to receive notification on any deals that fit my investment criteria that come into the market ASAP). My rockstar agent Share Ross helped me through this process from start to finish! We listened to what the seller wanted and offered it. They wanted a minimum take-home cash number, and we backed out the number and offered it.

How did you finance this deal?

Second-home (vacation) loan with 10% down payment.  The interest rate was around ~5.4%

How did you add value to the deal?

I am rehabbing the master bathroom (from the 80s), redoing flooring across the entire house, removing the popcorn ceiling and repainting the entire house, and adding a privacy fence.

What was the outcome?

TBD - based on the latest market comp, I have at least $50-100K equity within 2 months after closing. I will report back on the STR operating outcome.

Lessons learned? Challenges?

Managing rehab and contractors are extremely challenging, especially when remote. NEVER EVER pay contractors upfront (learned the lesson the hard way...)

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

I could not have gotten my first deal done remotely without the help of my ROCKSTAR agent Share Ross. I've never purchased any property before. Share was extremely patient and knowledgeable about the property acquisition process, and explained the ins and outs of real estate investing every step of the way. She recommended a great team of professionals to help me get the deal done (lender, inspector, etc.) I could not recommend Share enough if you are looking in Southeast Florida!