STR in rural vacation spot

[Kelly Johnson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $60,000

Complete renovation and using it as a short term rental in a small rural vacation destination spot.

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

I knew the area well and how much traffic it would get at certain times of the year. I liked the location personally and wanted to use the space personally as a quick get away.

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

Initially it was a listing call and the more I talked with the Seller and viewed the property I decided to make him an offer that would be quick for him and net him more than if we had listed it.

How did you finance this deal?

Cash

How did you add value to the deal?

Renovation - nothing had been done to it since it was built in the late 70's except for a porch being enclosed.

What was the outcome?

It has taken off quickly as a STR and I actually haven't been able to enjoy it much myself because it books so frequently but it's giving us the opportunity to get some cash back at a faster rate than I anticipated.

Lessons learned? Challenges?

The challenge was the timeline to get it done because contractors do not frequent this area on a regular basis. Since I acted as the GC, it was a big waiting game to get things done.