The Refuge - a Short Term Rental in Greensboro

[Carrie Foley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $258,000
Cash invested: $68,800

Bungalow near the university - listed as a short term rental

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

I loved the location and the style of house. I knew that it would do well as an STR based on comps near by. It had great bones and the numbers worked. And it was pretty close to being turn-key, which I needed for my first property

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

I found this deal through my agent, on market. I was worried about the amount of repairs it might need, and with no representation plusit was sitting for over a week, I decided the price was likely too high. I started my first bid at $245k ($2k Due Diligence, $4k Escrow) to see if he'd bite. I figured he wouldn't because there were other offers, but he did. I came up to $158k but didn't want to lose my chance to walk if the inspection came back with big problems, so stuck DD/Escrow amounts.

How did you finance this deal?

I went through a mortgage broker and got a 25% down conventional loan.

How did you add value to the deal?

I repaired a few things, painted it, changed out the railing, cleaned up the garden, and hired someone to put a mural on the retaining wall. Furnished it for listing on AirBnB.

What was the outcome?

still working on getting it listed - stay tuned...

Lessons learned? Challenges?

I think I put too much down on this loan. Wish I kept more cash reserves. I also got an appraisal back a little higher than the purchase price and wish I'd asked for some cash back at closing so I could have furnished it with the mortgage money.

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

Rob Phillips with eXp
Patrick Stoy and Luke Hersey at MC Morgage
Steve Martin at Pillar to Post Inspections