STR - Rental Arbitrage Deal

[Ace Venture]

Investment Info:

Single-family residence other investment.

Cash invested: $29,000

Our first STR. Launched in June, doing very well.

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

We have always been interested in real estate, after doing much research we came across Rental arbitrage and STRs. We focused on STR market because we didn't have much cash on hand and quickly learned from our coach/mentor that this business would attract the cash flow we needed for bigger deals.

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

Initially we attempted to find our first deal through Zillow and contacting 15-30 landlords every day until we came across someone willing to hear our business model. while we did generate a few positive leads with this strategy, we ended up landing our first deal through a social media follower who was aware of the business we started and referred us to a willing landlord that understood our model and was excited to work with us.

How did you finance this deal?

We used $17K of cash and $13K in business credit.

How did you add value to the deal?

We added value by turning this unfurnished 4bd 3br into a pleasurable vacation home with each room featuring beautiful, unique art from a local Raleigh artist, cool furniture to match the art's aesthetic, great lighting, a home theater and our futuristic touches.

What was the outcome?

with only being 3 months in, our STR has performed phenomenally. based on the numbers and projections we calculated before making this deal, we knew that it would be profitable. the numbers have exceeded expectations. A recent comment from our current tenant who is staying while her home is renovated stated "Our son said he wants to stay in this house and not go back to ours hahaha"

Lessons learned? Challenges?

One important lesson that we learned was to be more conservative with our budget. another was to make sure to do all necessary due diligence when securing a deal.

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

Yes! Jake Mercer with One Jozzby is a local Raleigh Real Estate Mentor/Coach offering amazing courses and one on one mentorship. We highly recommend him and his company.