Property was originally purchased as a flip and we inherited a tenant in place with a valid lease. That gave us time to hold the property as a rental and discover its potential use. Being in the Great Smoky Mountains with a 5 mile radius to Dollywood and the surrounding communities, we decided to do a complete remodel down to the studs including a cabin setting complete with log cabin siding and cedar ceiling. We added square footage and all the decks and now operate the property as a short term rental with massive success due to the team handling the management for us as the operators. https://www.airbnb.com/rooms/840728131308870818?check_in=2024-08-09&check_out=2024-08-11&guests=1&adults=1&s=67&unique_share_id=547e2f60-2b43-49e6-bb69-0aeb67bfecc9

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

Property was brought to us off-market by a seasoned wholesaler of whom we had a track record of buying from

How did you finance this deal?

It was purchased with a 80% hard money loan and the gap, holding cost, and rehab was provided by a Private Money Lender with an equity share position. Split was 75/25% of which 25% belongs to the investor.

How did you add value to the deal?

Originally pencilled out to be a flip deal, it was discovered to have a better use as a long term hold with a short term rental use. So we repurposed it into a short term rental after researching the project with our team. Team included CPA, Realtor, Property Manager, Contractor and our Insurance Agent. All info was used, then it make it a simple easy transition to enable the deal to fruition.

What was the outcome?

A fully operational hand off short term rental with positive cash-flow and after the cash-out refinance at 65% LTV, yielded an infinite return.

Lessons learned? Challenges?

It was paramount to listen to the team. Everyone's input had a favorable response to short term rental. We exhausted the details and realized there was no reason not to do so. We had multiple exit strategies in play such as 1. Flip, 2. LTR, 3. STR. All were viable, but its most effective use due to its location was STR.

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

Buckhead Cabin Rentals, Greg Chambers 828-446-0979 was essential in research for our decision to short term rental. His company operates, manages and owns STR's in the area and the advice we received was on par with actual knowledge for our project.