Short term rental/ fix and flip.

[Jared Adamson]

Investment Info:

Single-family residence other investment in Stateline.

Purchase price: $450,000
Cash invested: $80,000
Sale price: $757,500

We purchased a never updated cabin in a wonderful neighborhood in South Lake Tahoe. We gutted it and then turned it into a profitable short term rental for a couple of years. The value shot up in the area so we sold it and used a 1031 exchange to purchase 5 properties/7 doors in OK.

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

It was a great opportunity to capture equity and at the time we wanted to keep it indefinitely in our family as a vacation home.

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

An agent found it for us. It was being offered at $580,000, which it appraised at. We offered $400,000. We ended settling at $450,000.

How did you finance this deal?

HELOC on primary for down payment and rehab $. 30 year loan for the rest.

How did you add value to the deal?

Near total gut and reno.

What was the outcome?

We enjoyed to property and cash flow for years and now have exchanged into more passive properties in OK.