Short-term Rental Purchase and Renovation

[Brad Ruth]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $161,000
Cash invested: $30,000

This is a short-term rental property 10 minutes from Cedar Point with a private beach and is located 30 yards from Lake Erie. We have beautiful views of Lake Erie from both the front and back of the property. This is a Victorian cottage built in 1915 and is a 3 bedroom and 2 full bath property. We rent as a mid-term rental from October thru March.

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

I purchased another property in the same beach community earlier in the year and it was strong STR. I wanted to double down because the area is very popular for tourists because of Cedar Point.

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

This deal was sent to me from my realtor who I purchased our first STR rental through. He knew we were looking and kept up on his radar.

How did you finance this deal?

We did a standard home mortgage with 20% down and secured a 30 year mortgage with an APR of 2.875%.

How did you add value to the deal?

We invested about $80,000 in a complete renovation with included the following: painted top to bottom, all new flooring, new counter tops, sanded and repainted kitchen cabinets, added more cabinets in kitchen, new split unit HVAC, tankless water heater, all new furniture, new trim and blinds.

What was the outcome?

The property is renting as a STR in the Summer for $300-$350/ night and $1,500-$2,000/month as a mid-term rental in the off season.