Long Term Rental turned Short Term Rental

[Bernie Cesareo]

Investment Info:

Single-family residence other investment.

Was used as a Long term rental for 13 years, Now being used as a Short term rental:

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

I had been investing in Long term Rentals for about 30 Years. I was interested in STR when I had an opportunity with a tenant vacating. The results have been excellent and my occupancy has been quite high through different seasons.

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

The realtor (referred by my wedding DJ) I bought my primary residence through 18 years ago knew I was investing in rentals and kept on sending me unique properties. This one fit my criteria perfectly and we were able to make a very favorable deal! Ad a 560 Sq Ft 1 BR house, it did not meet FNMA.FLMC Guidelines so they had a tough time finding a buyer. I went in with a cash deal (From a HELOC) and offerred them a quick close. I then cashout refid my cash back.

How did you finance this deal?

I went in with a cash deal (From a HELOC). I then cashout refid my cash back and paid back the HELOC.

How did you add value to the deal?

Not right away.....The property was in decent shape when I bouht it. After renting it for a couple of years and a tenant who did a lot of drywall damage, I decided to renovate the home and change the layout to a more favorable layout which was more modern and usable.

What was the outcome?

The Home has been a good investment for the last 13 years and is now turning out to be a better investment as a short term rental. I plan to turn all my long term rentals into Short Term Rentals if and when they become available.

Lessons learned? Challenges?

In a Short term rental, any damage , and the few incidents have been very minor, is realized right away and paid for within a few days. The property is able to be in day 1 shape every few days as opposed to getting the property back after a year or less requiring dmage repairs and deep cleanings!