2nd home that became our STR

[Eric Forsberg]

Investment Info:

Single-family residence buy & hold investment in Ludlow.

Purchase price: $210,000
Cash invested: $300,000

1970s ski chalet located on a ski mountain. Minimal updates were made to the house before we bought it and we really wanted to invest in it so our family could use it through the years as a ski house which is why we justified the ~$300,000 in updates. Fully renovated, top to bottom, inside and outside. Appraised at $860k. We are so happy with the updates and guests are now renting it up for up to $1,000/night.

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

We bought this home mainly for our family to enjoy and also occasionally rented it out as a STR. When we saw how easy it was to rent and how much guests enjoyed it, we rented it out year round.

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

Found this home before it went to market through some friends who are investors in the area.

How did you finance this deal?

Primary home HELOC

How did you add value to the deal?

Gut renovation. Added a 4th bedroom with a new exterior, new deck, and a hot tub.

Lessons learned? Challenges?

Managing extensive renos from almost 3 hours away was tough at times. Contractors sometimes wouldn't show up or would work half a day. We had to let one builder go because he was moving so slow and his finish work was abhorrent. Then, we had to find another builder to jump into the project and finish it up.