Updated over 3 years ago on . Most recent reply
First Time Investor!
Investment Info:
Condo buy & hold investment.
Purchase price: $200,000
Cash invested: $93,000
Purchased this 2 bed 2 bath condo in Branson, Missouri with the goal of it being a STR. Purchased for $200K, appraised at $230k at purchase and $265k after remodel. Invested $33k into the interior remodel. We spent an additional $20k on furnishings, home decor, and outfitting the STR with all the creature comforts for our guests. We just hit the market in August and so far we have been booking up!
What made you interested in investing in this type of deal?
One of my former colleagues was investing in STRs and has found success. He helped guide me on this first deal.
How did you find this deal and how did you negotiate it?
I found this deal through a local real estate agent in Branson, MO. It has been sitting for a while because it needed work on the interior.
How did you finance this deal?
Conventional 2nd residence mortgage through a local bank that had a special Condo buying program.
How did you add value to the deal?
Interior remodel, new furnishings and home decor.
What was the outcome?
So far five star reviews and booking out fairly well.
Lessons learned? Challenges?
After closing on the home, I learned from neighbors that the building has a long standing issue with storm water penetration. This wasn't disclosed during escrow. In fact, the seller didn't disclose anything. I got a cursory inspection completed, but I wish I had gotten a qualified specialist to inspect it more in depth. Looks like the sun porch will need to be replaced to address the issue correctly, which will be costly. Currently seeking remediation from the COA to address the issue.
