University House Turned into AirBnB

[Alex Olson]

Investment Info:

Single-family residence buy & hold investment in Kansas City.

Purchase price: $235,000
Cash invested: $47,000

A large single family home converted to five bedrooms. Located less than a block from Rockhurst University. Used as an AirBnB/STR.

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

The location of this home is hard to beat. Located next to a well known local university and close to another, the expansion in this area is tremendous. The long term demand is very high, especially as the cost of tuition rises and dorm living continues to evolve.

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

This property came back on the market. I was watching it closely because I had a similar property near by that I was under contract on. One my first property fell through this one happen to come back on the market.

How did you finance this deal?

I financed this deal using traditional portfolio loan with a local bank and for the equity I used a line of credit in which I leveraged another investment property towards.

How did you add value to the deal?

I added another bedroom and positioned it for AirBnB so that rents could be maximized.

What was the outcome?

So far the house cash flows really well and there is a demand for short term rentals this close to universities.