First Short-term Rental

[Dock Newell Jr]

Investment Info:

Townhouse private money loan investment.

Purchase price: $160,000
Cash invested: $42,000

The author successfully purchased Tiki Dr for their Airbnb property, overcoming challenges in obtaining financing. They found a seller-provided financing solution, negotiated terms, and completed due diligence. The property was officially transferred to the buyer on closing day. The author then set up the property for Airbnb rentals, ensuring compliance with local regulations and safety standards.

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

I was interested in investing in this deal because Airbnb properties can generate rental income, and the location of Tiki Dr seemed promising for this purpose. Additionally, the seller-provided financing made the deal more appealing and accessible.

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

I found this deal through a real estate agent who had listings in the area I was interested in. Negotiations involved discussing terms directly with the seller, including the seller-financing details, and reaching an agreement that suited both parties.

How did you finance this deal?

I financed this deal through seller-provided financing. Instead of obtaining a mortgage from a bank, the seller extended a loan to me to facilitate the purchase. This helped me avoid the additional costs associated with traditional bank financing.

How did you add value to the deal?

I provided additional furnishing to enable the desirability of the property

What was the outcome?

The outcome of the deal was successful. I acquired the property on Tiki Dr for my Airbnb investment with the help of seller-provided financing, which allowed me to avoid the extra costs associated with traditional bank financing. I subsequently set up the property for Airbnb rentals and began generating rental income.

Lessons learned? Challenges?

Some lessons learned from this experience include:
Seller-provided financing can be valuable when traditional bank financing is challenging or costly, and conducting thorough due diligence is crucial to avoid potential issues with the property.
Challenges included: Initially, obtaining financing through a bank posed a significant challenge due to added costs, and negotiating the terms of the deal, including seller financing, required effective communication and mutual agreement.

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

Yes, I worked with Jake Sostheim from The Corcoran Group, and I would recommend him to others based on my positive experience.