Second STR Property

[Giani Brussich]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $340,000
Cash invested: $95,000

It is a small connected single family home. My wife and I (or mostly me) wanted to get as many properties as we could while the interest rates were low. We used a HELOC on our primary residence to put 10% down on the property. It was rent ready but we made updates to the furniture and backyard. It is primarily a STR but we look for MTR during the off season. However, it is not waterfront. To determine the Monthly cashflow, I did gross revenue divided by 12.

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

Money lol joking aside, I felt the area was a good overall market and we enjoyed staying there in general. Ideally, I want to leverage the Cash flow to purchase LTR to diversify our RE portfolio

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

MLS and with Sean McDonnell. Used the Home inspection to get a seller's credit along with Sean's expertise of the area

How did you finance this deal?

Conventional 10% Vacation home loan

How did you add value to the deal?

Updates to the interior decor and exterior landscaping but overall it STR ready for the most part

What was the outcome?

So far so good. All expenses covered

Lessons learned? Challenges?

Lessons learned, the cheapest deal isn't always the best deal. Ensure strong systems and budget for additional capital to enhance and update even the smallest fixes for a STR if you can. "Complaint Proofing" a house is great way to start an STR. It is much easier to rent/book a fully renovated property. HOWEVER, do not skip a deal because you do not have enough to renovate. Renovating as you go is still a good option that leaves you with an asset VS nothing.

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

Sean McDonnell