Downtown Wilmington Airbnb

[Jessica Pham]

We finally did our first deal! Here's how we did it:

Investment Info:

Duplex in downtown Wilmington.

Purchase price: $299,000
Cash invested: $6,000

Seller financing (4 years, 5.5% interest rate, 20 year-fixed amortization schedule)
Mortgage: $2,015.51

We're house-hacking; we still live in the larger unit (originally paid $1,350/monthly for rent).

Airbnb income around $1,500-2,500 monthly.

Airbnb Link:
Trendy Downtown Loft: https://www.airbnb.com/rooms/38047755

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

We ran our numbers and the potential to make enough money to cover our mortgage and more made the idea of Airbnb more attractive. In Wilmington, homestay Airbnb permits are permissible and with us living in the other unit, we knew we would have less issues.

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

We were already renting from the landlord and knew the house had been paid off. He approached us about selling and we pitched seller financing as a win-win situation for both and came to an agreement.

How did you finance this deal?

Seller financing: 4 years, 5.5% interest, 20 year-fixed schedule

How did you add value to the deal?

The house was ready to go; it's been owned by multiple investors over the years and each time improvements have been made. It does have a deep lot that's unfinished. In the future we plan to add a fire pit and swings and potentially look into building an accessory unit.

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

I am a real estate broker so I did all the paperwork myself. The landlord was also an agent so the transaction was easy.