Buy and Hold short term rental success

[Maranda Christensen]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $250,000
Cash invested: $80,500

1300~ sqft, 3bed 2bath ranch

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

We had been renting out our basement as a short term rental and had a 90% occupancy rate. When it came time for us to sell the home to purchase our a home in our ideal location, we didn't want to have to cancel our bookings. We found this deal only a few miles away, which was perfect for transferring bookings over to. It was a win-win-win, we were able to buy our primary residence and this fixer upper ranch at the same time, honor guests bookings and build instant equity.

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

I am a local Realtor, and had been watching this home, it went back on market twice. The timing wasn't right for us when it first listed. Once it hit the market for the 2nd time, we were ready to go. I knew listing agent, contacted her for the situation. We were able to view it before she fully marked it available for showings again. We were able to get in to really get an idea for the situation and offer accordingly.

How did you finance this deal?

30 year fixed income property loan. (conventional)

What was the outcome?

My husband is in general contracting and did a lot of the work. We were able to save thousands on labor costs because of this. We were able to update vanities, carpets, kitchen flooring, kitchen countertops, kitchen sink, 3 new interior doors, all new door hardware and a new roof for only $18,000!! There is still some TLC needed, but only minor cosmetics at this point.

Lessons learned? Challenges?

It's good to weigh the options for what you can do your self and what really is worth paying someone to do. After all, you shouldn't do it all yourself. Save yourself the mental headache.

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

I was a self represented agent, we worked with Jim Beam with the Triangle Lending Group and HIGHLY recommend him.