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Updated 3 months ago, 10/01/2024
LTR to STR conversion in Palm Bay FL
Investment Info:
Single-family residence other investment.
Purchase price: $80,000
Cash invested: $25,000
I helped my father-in law convert his LTR to a STR recently (he's owned it for forever, but we wanted to see if we could increase the revenue by switching strategies and updating it). We renovated most of the house over the last 6 months and just made it active on Airbnb April 2024. We will see how it performs soon but very excited about how it turned out! Link : https://www.airbnb.com/h/palmparadisehottub
What made you interested in investing in this type of deal?
I am interested in adding to my STR portfolio and helping my family increase the revenue of their existing investments as well! Super excited I'm able to help them do that, dial in out STR strategy, and make a little money managing it as well!
How did you find this deal and how did you negotiate it?
My father-in-law already owned the property. After a bad experience with a tenant (they had 12 pit bulls on the property and absolutely destroyed it), he was ready to sell it and be done. However once we started making improvements to the property, the idea of converting this to a STR (like the one we did a year ago), started to be a consideration. We decided to do it and very interested to see how it performs!
How did you finance this deal?
Property already owned, we used cash for renovation and furnishing.
How did you add value to the deal?
We completely remodeled the kitchen and bathrooms. We added a fence, landscaping, a deck and a hot tub. We made the one room a game room which all adds a lot of value for a STR investment.
What was the outcome?
Property came out awesome! As for how much better it will perform than a LTR? Time will tell! But I predict MUCH better.
Lessons learned? Challenges?
The classic renovation headaches, setbacks, budget, and furnishing which all just took way longer than we had hoped.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Just myself! Happy to help anyone in the area if they have any questions at all.
Quote from @Samuel Boyd:
Investment Info:
Single-family residence other investment.
Purchase price: $80,000
Cash invested: $25,000
I helped my father-in law convert his LTR to a STR recently (he's owned it for forever, but we wanted to see if we could increase the revenue by switching strategies and updating it). We renovated most of the house over the last 6 months and just made it active on Airbnb April 2024. We will see how it performs soon but very excited about how it turned out! Link : https://www.airbnb.com/h/palmparadisehottub
What made you interested in investing in this type of deal?
I am interested in adding to my STR portfolio and helping my family increase the revenue of their existing investments as well! Super excited I'm able to help them do that, dial in out STR strategy, and make a little money managing it as well!
How did you find this deal and how did you negotiate it?
My father-in-law already owned the property. After a bad experience with a tenant (they had 12 pit bulls on the property and absolutely destroyed it), he was ready to sell it and be done. However once we started making improvements to the property, the idea of converting this to a STR (like the one we did a year ago), started to be a consideration. We decided to do it and very interested to see how it performs!
How did you finance this deal?
Property already owned, we used cash for renovation and furnishing.
How did you add value to the deal?
We completely remodeled the kitchen and bathrooms. We added a fence, landscaping, a deck and a hot tub. We made the one room a game room which all adds a lot of value for a STR investment.
What was the outcome?
Property came out awesome! As for how much better it will perform than a LTR? Time will tell! But I predict MUCH better.
Lessons learned? Challenges?
The classic renovation headaches, setbacks, budget, and furnishing which all just took way longer than we had hoped.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Just myself! Happy to help anyone in the area if they have any questions at all.
Hi Samuel,
How is this STR going for you? I'm a beginner in the Melbourne area looking to start with rental arbitrage. Any insight in this market would be greatly appreciated!
Hey @Brittany Gray! Thanks for reaching out. It's going wonderfully so far, and we are working on bring in another one online early next year. I'd be happy to share our numbers and let you know what to expect and to look out for if you're thinking of going the arbitrage route. I'll shoot you a DM!
