My first short term rental

[Steven Tran]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $500,000
Cash invested: $25,000

Purchased a furnished 4 bedroom 2.5 bath single family home primary home that we converted into a short term rental. Close proximity to Portland, Oregon, without any of the short term rental restrictions (must live in it 270 days of the year and obtain a STR permit).

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

I bought this as a primary, as it's a nice house in a quiet city. After living in it for a little bit, it was too far from my friends and family than I'd liked. It turned into a great STR, as it is near Portland, OR and has no STR restrictions, so I could host big groups that want to be in Portland.

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

Found this deal on our local MLS, we got it at list price fully furnished against a few competing offers. Seller did not do any repairs.

How did you finance this deal?

Purchased with a 5% down conventional loan.

How did you add value to the deal?

We painted the siding to a modern black and white look. Furnished it with modern furniture. Did many of the repairs on our inspection report.

What was the outcome?

It quickly turned into a $2K monthly cash flowing property. I hired a team of cleaners to come in, and just manage the messaging from the various platforms (Airbnb & VRBO).

Lessons learned? Challenges?

Learning the customer service portion was difficult. I had to keep a much higher standard for the property than my multifamily long term rentals. Managing inventory of cleaning products and amenities provided to our guests was new to me.

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

I am a licensed agent in Oregon, focused on helping clients get into long term or short term rentals.