Our First STR!

[Cody Smith]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $180,000
Cash invested: $55,000

This is our first Short-Term Rental out of the 3 total we need to be financially free! This property was already beautifully renovated when we bought it and we furnished the property. We now self-manage and host this property and things have gone very well. Learning to Host a STR has really opened our eyes to how much different it is than managing a Long-Term Rental. We very much enjoy the process and look forward to adding more STR's to our portfolio!

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

As we near the end of my military career, we would like to separate from the Army with a financial foundation that allows us to transition with limited risk. With that goal in mind, we are investing primarily in STRs in my local area of Columbus, GA to maximize our cashflow to supplement my current income. Three of these deals will give us what we need to leave the Army and move to our dream location.

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

This was an on-market deal. I am a local Real Estate Agent and had MLS access to catch this listing as it hit the market and place our offer quickly.

How did you finance this deal?

We used our first conventional investment loan with 20% down.

How did you add value to the deal?

By furnishing this property as best we could for a little cost as possible, we believe we have created the image and drive this property needs to bring the demand of the constant Columbus, GA travelers. This demand for quality, well-hosted properties adds value to our cashflow.

What was the outcome?

Things are rolling along smoothly. We have great reviews and great guests, the demand has been impressive as well. January was our first full month as a live listing and our cashflow was just over $800.

Lessons learned? Challenges?

This deal we completed the traditional way by leaving our money in the deal. I sell real estate part-time to fund our investments. Now that we've spent all our money pn this property, we have to save back up for the next one; not very efficient. We would like to conduct a BRRRR to ensure we are making the most of our capital in the future.

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

Myself! lol In all seriousness, please reach out to me if you are interested in learning more about investing in affordable, fast-growing markets like Columbus, GA. There is a constant flow of people here and the city is growing more and more everyday. I have helped multiple other investors put their cash to use in a market that is much more affordable than where they currently are.