Purchasing furnished existing Airbnb in Joshua Tree

[Michelle Nguyen]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $396,000
Cash invested: $70,000

This property was already an Airbnb and came furnished with everything. The seller showed me their Airbnb deposit. The seller needed to move out of the country so they wanted to sell and shut down the property. The strength of this property is its visual impact and also the amenities offered.

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

For my first investment deal, I wanted to learn how to manage a property that is still within reasonable distance, but far enough so that it will force me to automate and learn how to manage it remotely. Additionally, I wanted an easy investment since I felt like I was not ready to take on the rehab portion. I also am a traveler, so I felt like running an Airbnb would be something I would be quite good at.

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

I set my Zillow on notification and as soon as I saw this house and the visual impact it has, I thought it would be great as an Airbnb.

How did you finance this deal?

Primary Conventional 15% down.

What was the outcome?

The property has been doing really well on Airbnb for the first two months!

Lessons learned? Challenges?

Even though the property is really cash flowing really nicely, I am unable to cash out of the deal so for the next one, I am definitely choosing a BRRR.