3 units on Lake Superior - AirBnB

[Cory Howes]

Investment Info:

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

Purchase price: $392,000
Cash invested: $40,000

Duplex and separate tiny home on 2.75 acres with 600+ feet of Lake Superior frontage, private boat launch. Currently using as a short term rental.

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

We have been looking for lake frontage for years. The only way we can afford it in by renting via short term rentals. We have now secured over 600' of frontage!

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

It was on the MLS. We had our offer in within 24 hours.

How did you finance this deal?

1031 Exchange

How did you add value to the deal?

New appliances, new floors, plumbed a separate washer and dryer. Added gas heat and fireplace, and expanded the master bedroom.

What was the outcome?

We had 90% occupancy in January and February! Its already cash flowing. Excited to see what summer brings!

Lessons learned? Challenges?

Everything is expensive! Especially HVAC and plumbing!! Sheesh they make a lot of money per hour!