4 Lakefront Cabins

[Hank Leber]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $563,000
Cash invested: $120,000

I purchased a group of 4 lakefront cabins in 2021. The property features a shared dock, 3000 sq ft of decking, and a fire pit for each cabin.

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

I have managed STRs for 10 years in Los Angeles, so I understand the business and operations. I'm a big fan of lakefront properties as vacation rentals, and the area these cabins are in is popular for tourists, so I felt confident in the deal.

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

Found it on Zillow the first day it was listed, and got under contract same day (offered over asking).

How did you finance this deal?

Traditional residential home loan.

How did you add value to the deal?

New furniture, coat of paint, and some minor rehab to the decking. I was able to list it on Airbnb within 2 weeks of the closing date!

What was the outcome?

Solid cash flow from day 1. In the first 10 days listed on Airbnb, the STR rental revenue booked covered the entire mortgage.

Lessons learned? Challenges?

Lesson: I wish I'd have gotten more of these properties in the good ol' days of 3% mortgages!

Challenge: It's in a neighborhood (no HOA), and renting the entire property (sleeps 25 in total) caused problems in the neighborhood, due to noise and parties – so we only rent the separate cabins now. The extra income is not worth the disruption to our neighbors.

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

None to recommend :-/