New STR in Machesney Park

[Kevin Brown]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $132,000
Cash invested: $23,000

Contributors:
Justin Sheley

We just purchased our first STR after a succesful rent arbitrage agreement.

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

The cash flow on our previous STR was very impressive.

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

FSBO on Zillow. We negotiated through our excellent realtor Justin Sheley. We ended up in a bit of a bidding war and accidently made an offer higher than our lender was okay with. We lowered our offer before they made a decision and they came back asking for our original offer. We refigured the deal, added more down and won the bid in somewhere the middle with some seller credits thrown in.

How did you finance this deal?

conventional investment loan with %15.

How did you add value to the deal?

Adding furshings

What was the outcome?

About to open the doors! So we'll find out soon.

Lessons learned? Challenges?

We lost one deal because we we're trying to minimize downpayment and didn't think enough about what other deal we were going to buy if the first one didn't work out. On the second one we were more agressive because time was of the essence heading into the busy season for the STR.

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

Justin Sheley