Updated over 2 years ago on .
Short-Term Rental New Bern
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $90,000
Cash invested: $21,000
3 bedroom, 2 bath home. Purchased with commercial 5 year ARM since we planned to use as a short-term rental.
What made you interested in investing in this type of deal?
I wanted more cash flow than a traditional long term rental would give me.
How did you find this deal and how did you negotiate it?
It was a vacant house in my neighborhood. I looked up the owner and sent him a letter.
How did you finance this deal?
Commercial loan. 5 year ARM. 20% down.
How did you add value to the deal?
Changed the roof, painted throughout, fenced in the back yard, and furnished it.
What was the outcome?
It is operating as a successful short-term rental.
Lessons learned? Challenges?
The bank I was working with at the time would not give me a residential loan on the house since I planned to use it as a short-term rental. So I used a commercial loan instead. I also learned it requires a lot of money, or in this case credit, to furnish a three bedroom house.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My lender was Union Bank at the time. They are now First National Bank.
