First investment property

[Melanie MacPherson]

Investment Info:

Other buy & hold investment.

Purchase price: $115,000
Cash invested: $135,000

I bought this property prior to knowing about Bigger Pockets. I wanted somewhere to put my 401K money other than the stock market. The property is one half of a duplex, 2/2, that I run as an airbnb. I paid $115K cash and put about $15-$20K into a remodel (flooring, cabinets, counters, bathroom vanities, increased the size of a shower, retiled the tub/shower). I was booked over 360 days in the first 12 months of operation.

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

We live in Central Florida, within 40 minutes of Walt Disney World. I knew I could get one of these duplexes for a relatively low investment and rent as a STR it for a minimum of $100 per night.

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

I'm a REALTOR so I found it on the MLS.

How did you finance this deal?

Cash out of my 401K.

How did you add value to the deal?

We replaced flooring, cabinets, counters, bathroom vanities, increased the size of a shower, retiled the tub/shower, replaced the refrigerator and microwave, and painted the interior.

What was the outcome?

I have been booked over 360 nights out of the last 365.

Lessons learned? Challenges?

This was kind of dumb luck, but, I learned not to be afraid to jump in! Finding a contractor to do a good enough job to run this as an airbnb was challenging. We fired the first one and the second one had to re-install the flooring the first guy messed up. I'm hoping to get three more of these, but word has gotten out and they're selling for significantly more than I'm willing to pay (as high as $150K).