STR/MTR - Toolkit saved the day!

[Andrew Bosco]

Investment Info:

Small multi-family (2-4 units) other investment.

Cash invested: $30,000

Two-Family home that I now manage for the family. The house used to only short-term rent for 12 weeks a year and generate roughly 60K in revenue. Now, the house is used as an STR/MTR model. It generates between 120-160K in revenue per year. Take home after taxes/utilities/cleaning comes to around 100-120K per year. House operates on a 16 week STR schedule and MTR off-season.

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

My father built this home with his father back in the 1960s. My parents paid two-mortgages, while raising 2 kids with a full schedule. They never saw a profit in this house since my grandmother lived there (grandfather died shortly after building the house). I wanted my parents to finally reap the benefits of their hard work for years. I'm a real estate professional and my gift to them as their son is to help them with retirement by using the house as a cash-flow model.

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

Family owned. I proposed I would help and my parents said "take the reigns".

How did you finance this deal?

We pooled in cash to furnish the house.

How did you add value to the deal?

They only STR the house for 12 weeks a year. I did some digging and added 2 discount weeks at the beginning and end of the prime season. I then figured out that MTR was the best course of action for the off-season. I've only had 2 vacant months in 3 years.

What was the outcome?

Cash flow for my parents who can now retire early.

Lessons learned? Challenges?

Be creative and don't be afraid to take risks. MTR was a learning curve for me.

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

I pulled from many people. Janine Whittaker and Jason R Homes were great for STR ideas. MTR - none other than the bigger pockets crowd!