Trying Out a Short-Term Rental for the First Time

[Derek Simkins]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $590,000
Cash invested: $52,000

- Plan to live in 1 unit for a year and turn the other 2 units into short-term rentals by 15 March 2023
- Currently under cosmetic renovation and stocking short-term rental necessities
- Projected Cash Flow first year: $299/mo
- Projected Cash Flow after 1 year: $1,549/mo
- Has a beautiful mural of cats on the front

Lessons learned? Challenges?

Y'all are not joking about it getting harder to get traditional lending as you get more properties. Luckily my lender was very knowledgeable and motivated. I learned so, so much about the financing and what it takes to start, not only 1, but 2 short-term rentals at the same time!

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

- Jeffery Nietupski, Real Estate Broker at Sunbay Real Estate
- Lucie Tighe, Short-term Property Management at Grand Welcome
- Tommy Whitehead, Florida Licensed Contractor\Renovation Management, REO\REIT Rehab, & Property Preservation Contractor at TomCo Solutions Inc
- Drake Beaulieu, VP of Mortgage Lending at Guaranteed Rate
- Frederic Llana, Licensed Insurance Agent at Goosehead Insurance Agency