First Partnership - Short Term Rental

[Grayson Spittel]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $665,000

Buy and Hold Short Term Rental Duplex - Private Money Partnership - 100% Other People's Money

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

In a crazy market, this Duplex sat for over 4 months because of a combination of too high original list price, deferred maintenance, and terrible pictures. All those things meant I couldn't stop thinking about it of course!

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

MLS

How did you finance this deal?

100% other people's money. I partnered with another individual through a private money agreement. They provided 100% of the capital for the down payment, rehab, and staging costs. I qualified for the financing, managed the rehab, completed the staging, and manage the day to day operations.

How did you add value to the deal?

I was able to research the market, find the deal, secure financing (15% down on a multifamily), find and manage the contractors, purchase and stage both units, and daily manage the Short Term rental.

What was the outcome?

While we purchased for $650k, we negotiated $30k in seller's concessions that covered a brand new AC unit and covered all but $5k of the rehab. Currently we are forecasting over $100k for the year in gross revenue. With minimal CapEx/Maintenance and no management fees, the return on investment is very very solid.