3 Bedroom House, Creative Financing, Short-Term Rental

[Patricia Taveras]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $175,000
Cash invested: $10,000

Creative Financing, Short-Term Rental

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

I already had two successful short-term rentals and wanted another.

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

My neighbor approached my husband and asked if we wanted to buy the house.

How did you finance this deal?

My husband and I didn't have the means to get bank financing at the time, so we partnered with my mother. She bought it for $75,000. She paid my husband $15,000 to rehab it. We rented it from her for $900/month for a year and put it on Airbnb. A year later we bought it from her for $175,000 for $1,000/month for 0% financing. We are still operating it as a short-term rental.

How did you add value to the deal?

We replaced the roof, changed most of the flooring, painted throughout, fenced in the backyard, and furnished it.

What was the outcome?

It is still a successful short-term rental.

Lessons learned? Challenges?

When you think you can't buy a house for the traditional way through the bank, look for a creative solution.

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

Steven Bell, real estate attorney in New Bern, NC.