Short Term Rental Property

[Eloy Gonzales]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $200,000
Cash invested: $15,000

Short term/mid term rental unit

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

We approached the owner of this property several times over a 3 year period and just made our interest known. Then we leased with an option to purchase to learn if the property would do well as a short term rental. Then we purchased.

How did you add value to the deal?

I offered the owner the option of using the property when she was in town in exchange for a reduced rent during the lease with the option to buy period. We also made some improvements such as tile work in part of the house. After the purchase we improved the outdoor space to improve occupancy rates.

What was the outcome?

The strategy was helpful to get the seller onboard with the quality of our service. It also gave her time to think through the idea before jumping on it. I don't believe she thought we would actually purchase.

Lessons learned? Challenges?

Gentle persistence and adding value to the deal even before it fully materializes is helpful.