Mid-Term Rental - Henderson NV

[Cassidy Klundt]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $326,000
Cash invested: $40,000

I own a single family home in Henderson, NV - recently renovated and converted to a mid-term rental little over 5 months ago. We've had 91% occupancy and generated $24,000+ in 163 days. We use AirBNB, VRBO, and Booking.com. We'd like to get into co-listing and co-hosting for revenue generation, and otherwise our long term plan is to have a portfolio of 10 SFH properties, and move into the MF Home space.

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

I've been watching the STR space unfold for 2 years, and decided to jump into the space in June of 2023. My interest in real estate has definitely grown over the years, and my need to generate passive income has definitely grown along with it.

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

We originally bought the house in 2015, refinanced in 2021, and had a unique position as a result to leverage the equity and convert to an asset.

How did you finance this deal?

Traditional financing. 30 year through conventional lender (PHH Mortgage)

How did you add value to the deal?

We renovated the kitchen, the BBQ Patio, the 1st floor tile, the master bathroom/shower, and replaced all furniture in 2023 to a new look/feel of the property.

What was the outcome?

We now have an asset that generates 5000-7000 per month in additional revenue, and 2500-3500 profit. It took us 6 months to recuperate the renovation cost of 12k. Insurance covered the other items like tile replacement, when a leak were found in 2015.

Lessons learned? Challenges?

Evaluating renters/tenants is an art form. Where you have rules in place for things like pets, or number of occupants, stick to them! The odds that by going against them to benefit a tenant, especially in times of solving for vacancy, are slim that it works okay without major difficulty. Yes real estate is the game of solving problems and are oftentimes welcomed, but in the mid-term rental space we're finding some tenants simply aren't worth the hassle.

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

I learned from mentorships with Jon Farber and Derek Cheung that both specialize in the STR space.