Short-Term Rental New Bern

[Patricia Taveras]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $45,000

Short-Term Rental

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

Already investing in this type of deal

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

My daughter and I were driving neighborhoods in the school district she wanted to be in looking for a house to move into. We found two rental properties instead. We looked up owners of distressed properties and sent them letters. We found one owner who wanted to sell two properties in the same neighborhood.

How did you finance this deal?

Cash-out refinance on two existing short-term rental properties with DSCR loans. Was able to pull out enough cash for down payments and rehab on these two houses.

How did you add value to the deal?

Installed LVP flooring throughout, all new appliances, painted, installed crown molding, changed bathroom vanities, fenced in the back yard, installed new ceiling fans and lighting throughout, changed lower kitchen cabinets and countertop, painted upper cabinets, installed two new windows in the house, changed HVAC, and furnished it.

What was the outcome?

Operating as a successful short-term rental

Lessons learned? Challenges?

It was challenging to buy and rehab two houses at once. We ran out of rehab money on after finishing the first house, and had to slowly work on the second house as we earned money. But it was worth it.

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

Aleta Ortiz of Atlantic Bay Mortgage