Lease option vacation rental

[Shayna Gorton]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $214,000
Cash invested: $40,000

We got this single family home as a lease option. Did a little work and now use it for short term renting on airbnb

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

We were looking for a second home to do vacation rentals.

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

A friend said they wanted to get $20000 out of their sale of their home. So we paid them 20000 to lease option their home.

How did you finance this deal?

We used a second in the primary home to finance the 20000 plus another 20000 in fixes and staging

How did you add value to the deal?

We now have equity in this home over 70k and a lease option that says we can sell it and keep the profit.

What was the outcome?

We have a income property

Lessons learned? Challenges?

We're considering how we could have structured this deal better on paper. Should it have been a warranty deed instead for instance. Still looking into it.