College Town Bungalow -- STR/MTR

[Donna Williams]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $32,000

2BR/1BA in central location. Started as a short-term rental but have shifted over to MTR.

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

This is the first investment property for my husband and I, so we wanted to start with a versatile and smaller, turnkey property. The location is very suitable for a diverse group of travelers that our college town attracts.

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

We worked with a local agent that we really enjoy and this house was listed on the MLS. We responded quickly and negotiated the furnishings.

How did you finance this deal?

DSCR loan.

How did you add value to the deal?

1) I stayed in touch with our agent and looked at many properties. I ran the numbers on many properties.
2) I engaged with many lenders to find a rate that was best for us.
3) Negotiated purchase of furnishings at a discounted rate to expedite listing the house for STR/MTR.

What was the outcome?

Purchased house furnished with no hassle.

Lessons learned? Challenges?

It's good to do things that make you uncomfortable.
Running your numbers is important and can also help give confidence that you're making a strong decision even when discomfort kicks in.
Keeping track of the things to do while under contract was a little disorganized; so had a couple of things to scramble for before closing.

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

Yes!! Love my agent and would be happy to refer her. Our lender was great, too.