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Updated over 4 years ago,
2nd Home Investment in the Mountains
Investment Info:
Single-family residence buy & hold investment in Overgaard.
Purchase price: $145,000
Cash invested: $14,500
Purchasing this lovely cabin as a second home and will short term rent it when not in use.
What made you interested in investing in this type of deal?
Wanted to acquire a cabin for personal use but cashflow through short term rentals. Financials on the property currently as a short term rental indicated good cashflow.
How did you find this deal and how did you negotiate it?
Located another cabin in the area and connected with the agent. She mentioned the seller had another property (this one) that he was going to be listing and we could pursue if we were interested. We went back and forth for a little while, while we ran numbers and secured financing (more on that later). Started negotiations low, while requesting financial statements through the contract. Settled on a price that included furnishings in the home.
How did you finance this deal?
Conventional financing. Originally spoke with a lender that was not going to approve us alone, as they were not counting income from our rental. Planned to bring a partner on, but was able to find a lender that approved us and the partner was going to make the numbers less desirable in the end.
How did you add value to the deal?
Negotiated furnishings at no cost, added 5% equity on appraisal.
What was the outcome?
Closed and loving the new home! I'll post an update after a few months and we see how the short term rental numbers and income look!
Lessons learned? Challenges?
When you get a no, find out why and find out who can give you a yes! Also, when a good deal comes your way, jump on it!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was the agent that represented the buy side. Teri Meacham with West USA Realty was a pleasure to work with as a Listing Agent and Brian Sinfield with Movement Home Loans was an incredible lender.
