Shotgun home used for Airbnb

[Barrett Goff]

Investment Info:

Single-family residence buy & hold investment in Louisville.

Shotgun style house in an up and coming part of town. 2 bedrooms/1 bathroom and a cellar.

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

This home is located in a part of town that is absolutely booming. Bars, restaurants and entertainment are going up all over the immediate area.

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

My coworker notified me of the property, and luckily the seller was also an agent who initially listed the property too high which resulted in no interest. We watched the property gradually drop $20k, and then made our move. We ended up closing for another $6k off the new lowered price.

How did you finance this deal?

We used a 5 year ARM loan with 20% down.

How did you add value to the deal?

Upon closing we replace the entire roof and added a brand new HVAC system.

What was the outcome?

We are currently renting the property long term, but once the current tenants move out we will do further renovations to clean up the property and host it on AirBnB now that we have secured our conditional use permit.

Lessons learned? Challenges?

I have not had many issues with the tenants or property itself. Next time I may not be so hasty in upgrading the HVAC system so quickly, but otherwise this was a great purchase and the area of town has already begun to develop pretty quickly.

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

Barrett Goff with Family Realty in Louisville, KY!