My first short term rental

[Sam Lusey]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $30,000

In February 2022, I purchased a single-family home in Tucson that I am using for short-term rental. After getting it started April, I just had my first month of positive cash flow in July.

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

I've wanted to get into short-term rentals for a long time. Arizona was always an area that interested me and based on my research and comparisons, I feel it has a lot of potential.

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

I found this property on Realtor.com and used a local agent in Tucson to get it purchased.

How did you finance this deal?

I put 10 percent down and got a conventional loan.

How did you add value to the deal?

I fixed up the house by installing new flooring in the living room, got a long punch list of actions done to improve the residence and furnished it.

What was the outcome?

It has been renting out on Air BNB and last month began to cash flow.

Lessons learned? Challenges?

The number one lesson learned so far is to do better research on property managers. Right now I'm locked into a one-year contract with a company that hasn't impressed me so far. I will likely self-manage after this year.

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

Not on this deal.