First Short Term Rental

[Andrew Boyer-Kern]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,457,250
Cash invested: $387,500

Turned the property into a short term rental and used the STR loophole to offset capital gains. Learning to systemize and optimize this first year and have gained so much knowledge. Looking to cohost other high end properties in the area.

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

It's always been a dream to owner a STR on the North Shore and it's why I started investing in real estate in 2019. We were extremely close to buying one in the end of 2018 but we were beat out, so we turned to LTR in our local market.

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

Emailed numerous realtors about STRs that met our criteria to offset our capital gains. The realtor sent this property, it was also listed on the MLS. It had been sitting for 80 days on the market because the timing it went on with interest rates rapidly rising. The property was gifted to a nonprofit, we made a low offer and stuck to it. Seller covered all closing costs.

How did you finance this deal?

Commercial loan from my local bank.

How did you add value to the deal?

Was a personal cabin that we turned into a STR.

What was the outcome?

Holding it as a family legacy.

Lessons learned? Challenges?

It’s been challenging to find local contractors.

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

John Oberholtzer our realtor was awesome to work with. Highly recommend him.