Vacation Rental in Savannah GA

[Eric Prine]

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $325,000
Cash invested: $30,000

Bought as a personal residence and house hacked it before I knew that term. When I moved away from Savannah it was used as a traditional long term rental. Four years ago we turned it into a vacation rental. Everything is above board and we have a Short Term Vacation Rental license from the city and pay all the city and state taxes and have a manager that runs it. We recently refinanced and pulled $80,000 out of it and are using that money to start our BRRR investing in Philadelphia.

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

It began as a persona residence then became a long term rental and then it became clear that in this area short term vacation rental are very profitable and if you stay within the confines of the regulations I think they can be fairly safe long term.

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

Bought it in 2005 as a personal residence. I don't recall if I negotiated at all or not.

How did you finance this deal?

$0 down conventional loan. They were giving those away in 2005 :)

How did you add value to the deal?

Did some renovations when we changed it to a vacation rental.

What was the outcome?

A great vacation rental that does very well and we were able to cash out refi.

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

Mike Tavani at Guaranteed Rate for the cash out refi.