Airbnb Home in Coeur d' Alene near Lake.

[Chad Riley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $350,000
Cash invested: $88,000

5 Bedroom, 2 bath home, fenced yard and detached garage.

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

I really loved this location and being walking distance to the lake and city attractions. This has made for a great Airbnb rental for the past two years.

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

This was a deal that I found from a friend who owned the property and wanted to sell it to get money for another home purchase and they were tired of dealing with managing an Airbnb.

How did you finance this deal?

I ended up financing this with my IRA investments I had saved up over the years. I heard about doing something called a "Self Directed IRA" and took money out of my slow growing investments in the stock market and turned it into this home that is doing much better and continues to pay itself down over time. Its not super easy to do a Self Directed IRA but I'm glad I tried and got this home under my belt.

How did you add value to the deal?

I upgraded some of the interior furniture, did some painting and also added a seating area and picnic table in the backyard for summer guests to enjoy. It came fully furnished and in pretty good condition already. My next project is to remove the chain link fence in the front and add a nice white picket fence to add to the old craftsman charm. (I hate chain link fences!!)

What was the outcome?

Its been a great experience and I've had nothing but 5 star reviews on AIRBNB and people love the home. Its an old home built in 1920 so I have to keep an eye on some cap ex things that might pop up in the near future.

Lessons learned? Challenges?

The challenge here was getting all my ducks in a row and paper work lined up to legally and safely pull my funds out of my IRA and turn it into capital to invest into this property. I'm not sure if I would do it again but I'm glad at the moment I did. I enjoy having a better look at my investments and knowing what they are doing.

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

I worked with Sarah Cline who was the realtor / listing agent and the home owner as well. http://www.sarahclinerealty.com/