Closing on 2 STR Log Cabin during the start of COVID19

[Josh Goldstein]

Investment Info:

Single-family residence buy & hold investment in Pigeon Forge.

Purchase price: $635,000
Cash invested: $140,000

This deal was 2 log cabins on one large piece of land. I am self managing by listing them both on AirBnB and HomeAway/VRBO.

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

After I listened to Avery Carl on BiggerPockets episode 364 I reached out to her to start looking for my own short term rentals.

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

The properties were listed on the MLS and Avery advised which areas were good for short term rentals and which were not.

How did you finance this deal?

Conventional loan with about 20% down.

How did you add value to the deal?

Replaced some furniture, ordered new linens, towels, and any lingering repairs.

What was the outcome?

I was braced for no guests since COVID and lockdowns were just starting to happen. So instead I focused on getting the cabins ready from a distance (I had planned on going out for closing, but couldn't travel because of lockdowns). I discounted during April and people started booking, some rented for a full month to get away and others for a weekend/week. Was able to get enough to cover costs for the month and now if seems to really be getting back to normal, in May I am starting to cash flow

Lessons learned? Challenges?

Even if a place comes fully furnished for STR's still plan on a decent amount for replacing some furniture that looks too worn down and replacing all linens/towels, etc. Even though I had a chance to back out because of COVID I felt like if I stuck with it that it would turnaround and still make sense.

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

Avery Carl was my realtor.