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Updated about 6 years ago,
Hotel Room Converted Into Condo - Airbnb
Investment Info:
Single-family residence buy & hold investment in Bend.
Purchase price: $192,000
Cash invested: $39,000
1 Bedroom, 2 Bath Condo.
Originally was a hotel, and the hotel rooms were converted into Condos.
Currently on Airbnb
What made you interested in investing in this type of deal?
I liked the idea of having a condo in a place I love to visit, and a place that has seasonal outdoor recreation.
How did you find this deal and how did you negotiate it?
Found it on a realtors Instagram feed. It was an offer, counter offer, counter deal. Started at 200k.
How did you finance this deal?
I saved up for 15% down.
How did you add value to the deal?
There were other unites that were cash-flowing 20k/year ( about 1666 a month on average), that sold for 200k.
The mortgage, insurance, HOA, remodel costs and other costs end up being 1300/month. Average cashflow is 350 a month, with some months being huge in summer.
What was the outcome?
I remodeled the condo, and put it on Airbnb. I am a superhost and average 350/month in Cashflow for the first 7 months of bookings.
Lessons learned? Challenges?
I am self employed, so originally it was tough to go through a bank. I ended up calling about 10-15 different lenders, brokers, banks etc., before someone one fund the deal.
Time to remodel- this took about 4 weeks longer than I expected, but I was doing most of the work.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, a great Realtor, and Broker.