Soft Flip - Cashout Refi - bought another with the equity and now an airbnb!

[Zac Hales]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $245,000
Cash invested: $25,000

1950s ranch we did a soft flip on. Then pulled cash out and now use as an air bnb.

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

I love rentals where there is value to be added

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

I was going to list this for a seller and because of her concerns regarding the sale process, I offered to buy it on her terms (more than just price). It worked out wonderfully.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

The neighborhood has a ton of potential and the home needed some cosmetic upgrades. We did that then kept it rented for two years. The fenced in back yard makes it a fantastic option for a dog friendly air bnb!

What was the outcome?

We caught a wave of appreciation and did a cash out refi for more than enough to purchase the next property. The timing of the new loan could not of been better, and our interest rate dropped, so pulling out $80k only resulted in a $300 a month increase. It is now an air bnb with consistent cash flow well above long term rental rates.

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

Doug Anderson at Towne Carolinas for the purchase and Chris Holt at CIMG for the refi