Our first STR investment from 2018

[Richard White]

Investment Info:

Condo buy & hold investment.

Purchase price: $155,000
Cash invested: $40,000

Our Cabana condo in Carolina Beach operates as a STR through Airbnb, VRBO, Booking and Google.

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

I purchased my primary residence in Carolina Beach in 2009 and rented back to the sellers for the first year. Also rented the ADU for a year and then started with both on Airbnb in 2016. We were very successful with these rentals and decided to expand in 2017.

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

We used a good friend who was a local agent to help find and analyze the properties.

How did you finance this deal?

Commercial loan through a local bank with 20% down.

How did you add value to the deal?

We updated the unit cosmetically through paint and furnishings, as well as consolidated the kitchen and added more living room space. We also provide beach rentals in the summer for all of our guests.

What was the outcome?

We have been one of the top rated Airbnbs on our island since we listed in 2018 and have grown that success to include co-hosting for other buyers.