A-Frame 2 bedroom 2 bath short term rental in Sugarloaf, CA

[Chris Willard]

Investment Info:

Single-family residence other investment.

Purchase price: $485

Purchased, renovated and have continually grossed 80K per year of short term rental business. Running a 70% occupancy and $322 ADR

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

I purchased this property in 2021 and knew there was potential to grow this short term rental. In time, I set up all the marketing strategies to drive weekday direct bookings and have increased occupancy and rates over 6 month.

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

From OJo, connected with local realtor and we worked together on the negotiation. The key was to pay the difference if it appraised lower. I was confident it would appraise for purchase price.

How did you finance this deal?

Lender at a 3.25% interest

How did you add value to the deal?

Coming from hotel sales management; I understand the extra layers of strategy and marketing to deliver more bookings and grow rate through revenue management.

What was the outcome?

Increased occupancy by 20%

Lessons learned? Challenges?

Do not use booking.com; horrible service and too high commissions.

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

Yes, I'm happy to refer only the best your way.