Short-Term Rental New Bern

[Patricia Taveras]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $135,000
Cash invested: $45,000

3 Bedroom Home, Short-Term Rental

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

I have experience with short-term rentals in New Bern.

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

My daughter and I were driving through neighborhoods in the school district she wanted to be in hoping to find a house to move into. We found two rental properties instead. I sent letters to owners of distressed properties we found on these drives. An owner of two properties in the same neighborhood agreed to cut me a deal if I bought both houses from him.

How did you finance this deal?

My husband and I did a cash-out refinance with DSCR loans on two of my short-term rental properties. This allowed me to pull out just over $90,000. I used this money as down payment money and rehab money on the two houses I bought from this seller. I used conventional loans from Atlantic Bay mortgage to finance the two new houses.

How did you add value to the deal?

We changed the flooring to LVP throughout, painted, added crown molding, installed new lighting and ceiling fans throughout, did light cosmetic upgrades to the bathrooms, fenced in the backyard, removed dead tree from front yard, and re-graveled the driveway.

What was the outcome?

It is operating as a successful short-term rental.

Lessons learned? Challenges?

In order for the bank to finance this property we had to lay the flooring before closing. Spending $5,000 laying floor in a house that did not belong to us yet was worth the risk.

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

Aleta Ortiz of Atlantic Bay Mortgage