My Short Term Rental Journey

[Ralph Scales]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $162,000
Cash invested: $80,000

This was my first Short Term Rental. Purchased renovated and designed. Appraised 410k

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

I have had long term tenants and decided I wasn't a long term landlord. I love design and care about peoples experiences.

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

Brought to me by a buddy. Gave him a cash offer.

How did you finance this deal?

Private Money ( IRA)

How did you add value to the deal?

We completely renovated property, and added a driveway.

What was the outcome?

200k in equity and a cashflowing property. Happy lending partners that got a killer return.

Lessons learned? Challenges?

We were held up by a plumber that could not figure out how to install the stand alone tub on slab. He got into a head to head with the inspector. We let the plumber go and brought in another and passed no problem. I've since had other projects and the minute I hear a non solution driven response from a contractor and they butt heads with the inspector we keep it moving rather than get held up on a project.

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

No this was private network.