STR Strategy for Chicago No Licensed Needed

[Jeffrey Ma]

Investment Info:

Other other investment.

Purchase price: $2,100
Cash invested: $8,000

A STR Arbitrage, leasing for $2100 and leasing out for $3200 . Fully furnished 2 bed 1 bath apartment. Focusing on traveling nurses and 30+ day stay travelers.

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

It was a opportunity to do a Airbnb but the landlord wasn't too keen on having multiple guest per month so we pivoted and focused on traveling nurses and business persons that typically have a 30+ day stay. This also allowed us to get the ball rolling quick because in Chicago you need a license to Air BNB if your guest stays less than 28 days, but if they stay more than that technically they are a tenant, that way we actually can screen our guest more thoroughly with credit and background checks

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

This is actually a relative that asked me, since I am a agent, to lease out the unit. They were still unsure so we ourselves negotiated a 6 month lease, with the option to sublet.

How did you finance this deal?

Everything came out of pocket

How did you add value to the deal?

We used air dna and sites like furnished finder to compare prices and potential income opportunities

What was the outcome?

A bit out a rough start getting things off the ground, but we had our first guest after 2 months.

Lessons learned? Challenges?

I had a partner that was suppose to do a lot of the work but unfortunately I had to fire them. Since I was putting the majority of the money into the deal, the expectation was for them to put more time into getting things ready, but they only wanted to do what they were supposedly good at which is staging. I should've vetted them more instead of trusting their word.

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

Nope