Midterm Rental - 30 Day Plus Bookings Only

[Ja’el Thomas]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $392,975
Cash invested: $93,000

This property was purchased with two other partners under a joint LLC to help a veteran of our country through a divorce who could no longer afford the costs and repairs of his family home. By purchasing this property we helped him move on with his life and gain a fresh start.

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

I became passionate about the midterm rental strategy because it's more stable than AirBnB bookings. Also, we're able to helo families that are displaced through insurance adjusters.

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

Through cold calling preforeclosure lists in PG County. It was consistent follow up and truly caring about the homeowners needs to provide a solution ti his specific situation.

How did you finance this deal?

Cash

How did you add value to the deal?

Full renovation, interior designer, and midterm rental manager

What was the outcome?

After two months we finally booked this home to a family of 7 that was displaced due to a fire and flood in their primary residence. Currently they have a 6 month lease that may extend to a year at full price for each day. It's a win win because the insurance company saves money by booking one large house instead of 3 hotel rooms everyday.

Lessons learned? Challenges?

Hire more experienced contractors the first go around and getting a project manager to oversee all parties involved in renovation and design.

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

No I was the only agent involved in the transaction we used my valuation and market knowledge but I acted only as an investor on this one.