BRRRR STR near Branson, Missouri

[Ryan Duffy]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $190,000
Cash invested: $150,000

Off market 3/3 on 1.5 acres with detached shop. Gut reno to add a 4th bed and bath and purpose designed STR with a lakeview near Branson, MO.

Purchase price $190k
Appraisal $200k
1031 $120k downpayment
HELOC covers the reno
ARV $412k
ADR $450/nt with 60% occupancy

Www.ozarkmountainvacation.com

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

Branson is a very regulated market that is hard to find stand alone private SFHs that can be used for STR. I've owned 2 prior to this one just 20 minutes south of Branson in Omaha, AR (unregulated). Judging by past performance of my other units, I was confident that a luxury finished lakeview home in this area would outperform comparable 4/4s in the greater Branson area.

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

Cold calling based on local area knowledge and tax records

How did you finance this deal?

1031 for the DP
Commercial loan through local bank
HELOC through the same bank
Increased HELOC after reno for next acquisition

How did you add value to the deal?

Gut reno
Removed trees to create a lake view
Surveyed off the detached shop with its own half acre to rebuild it into a stand alone 1 bed cabin

What was the outcome?

2 income producing STRs with room to build more. Projected gross income for 2023 $150k with a total investment of $430k

Lessons learned? Challenges?

If you're going to gut reno 90% of the house, do yourself a favor and do the last 10% while you're at it. We saved a bathroom and some of the existing wiring because it looked good cosmetically (recently renovated). Once the rest of the house was done and we had renters in the unit, we started having issues with the plumbing and electric in the areas we didn't redo.

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

Duffy Homes Realty (us) for the acquisition. Duffy Homes LLC for the reno. Table Rock Community Bank for the financing.
Www.duffyhomesllc.com