Infinite Cash on Cash Return... All HUSTLE

[Joe Stout]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $205,000
Cash invested: $35,000

This one I bought with a partner I met on facebook and I let him do my taxes for me. We were having calls every week and he told me this market was his favorite vacation spot and he wanted to buy something here. So I went to find a deal. Built a team, etc. He was the money partner I was the hustle partner and bought it with a 10% down vacation home loan in my name. We drove a Uhaul from MD to OH with all this furniture we picked up at this yardsale for like $2500. MAYBE the most fun Ive had.

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

I really desperately wanted in on the Short Term Rental space. I had been studying it for a year prior and it was time to take action!

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

Found it on the MLS and all we negotiated for was 3% closing help, which saved us $6,000 in closing costs!

How did you finance this deal?

10% down payment vacation home loan, partner brought the down payment, closing costs and rehab money. Bank brought the other 90% and I was in it just for my hustle!!

How did you add value to the deal?

We replaced the floors, we added backsplashes, we painted all four floors, put up lots of new decor, and we cleaned all day and night. Big shoutout to the cleaners. They are literally still painting the trim 8 months later to make this place look flawless.

What was the outcome?

We now have a cash-flowing asset. We didn't project much more than 60% occupancy in the off -eason. We're getting 100% in march and 73% in April in a market where summer is the peak season. Unbelievable. We really were caught off guard by the amount of opportunity here.

Lessons learned? Challenges?

Yes, needed much better systems to keep track of the contractor, what all was being bought and by who. There was mass miscommunication which I take full responsibility for. I let my other projects take over too much!

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

Yes I would love to recommend Brian Bower - OH lender & Shelly Recker OH Agent.