STR Cabin #2 (Sept-2023)

[Mike Costello]

Investment Info:

Single-family residence buy & hold investment.

Well built tiny-cabin (650sq. ft) with oversized and overbuilt garage (1000sq. ft) on 1/4 acre lot in the highest elevation year-round community in Tuolumne County - Leland Meadows, off Hwy 108 @ 6300' elevation. Beautiful alpine meadow and mountain setting, surrounded by the Stanislaus National Forest - community features small lake, tennis courts, and more.

Plan is for year-round STR, conversion of 1/2 the garage to ADU to double heads-in-beds and add flexible living space too.

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

The oversized garage and tiny cabin made this a very unique property - too small of a living space for most buyers; too much garage build out for the market. I was the only serious tire-kicker on the deal across an 18 month period. I stood in line, alone... until the sellers were ready to make a deal.

The location is impossible to beat for a mountain community and access to year-round adventure & recreation. Quality build with unique features that removed all other buyers.

How did you finance this deal?

10% second home loan though Northpointe Bank - Jeff Chisum & team.

How did you add value to the deal?

See opportunity where others do not; stay connected to the agents and seller while patiently keeping them informed of my motivation to close a deal, and my willingness to wait for the right price.

What was the outcome?

40+ guests in first 6 months of STR activity - All 5 stars, with exception of 2 4-stars.

Lessons learned? Challenges?

Winter at high elevation makes STR mgmt from a distance much more challenging!

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

Jeff Chisum, 10% 2nd home loan professional. Great team.