First post, first property!

[Ryan McKay]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $239,000
Cash invested: $100,000

Two bed, two bath vacation rental cabin in the hills of beautiful Murphy North Carolina

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

This is been a long time dream that always seemed out of reach until 2020 when my family's financial status solidified which made things much more possible. I've long believed that the real path to financial freedom is in owning assets, and I have a background in both hospitality and marketing which made a buy and hold strategy much more appetizing.

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

After researching the general area for nearly 12 months, I finally bit the bullet and began contacting a couple of agents who had been recommended. When we finally began to move forward with this property, are chosen agent had to step aside and her boss stepped in. There wasn't much negotiation unfortunately, though we did get a good deal on the property strictly through benevolent timing.

How did you finance this deal?

We went in more traditional route of getting a second home mortgage, and pulled out a HELOC from our primary residence to pay for the down payment and improvements.

How did you add value to the deal?

After purchasing, we have added roughly $40,000 of furnishings thus far, and later this year we will add another $15,000 worth of improvements to the land itself including grading, landscaping, and an area for a hot tub and fire pit.

What was the outcome?

This is a fairly new endeavor and so far my wife and I are enjoying the ride. Candidly, we started in October which was the beginning of slow season so we have yet to fully cash flow the property over the last 4 months (we have kept our prices low in order to build up reviews and that has kept us booked steadily), but the area picks up steam in April each year which is when you start putting money aside for the slow months!

Lessons learned? Challenges?

Airbnb is a fantastic opportunity for the person who is looking to invest with a buy and hold strategy and who has the capital required to furnish and service the property correctly, but it also adds a level of hospitality that probably isn't suited for everyone. Looking back at things, I wish I had moved quicker, had a better understanding of the process, and had involved a team that was more familiar with the process and (sadly) a bit more "aggressive".

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

While our agent was very pleasant and owned her own rental properties, it became very apparent that that didn't necessarily translate into being the type of agent that I would necessarily recommend for this type of project.