Cash Cow Single Family Airbnb!

[Payton Pearson]

Investment Info:

Single-family residence buy & hold investment in Beavercreek.

Purchase price: $230,000
Cash invested: $4,000

This is a single-family home in an upscale community, just 8 minutes away from one of the largest malls in Ohio, particularly Dayton.

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

I'm a military veteran, and have access to VA loans which require 0 money down (100% leverage). You are allowed to purchase one property with a VA loan per year, so long as it's an upgrade from your current residence and/or in a different location. I was looking for a very good property that was genuinely an improvement from where I was living, and had to pounce quick due to the tight market. I got this for $20,000 under asking. It's no doubt worth much more.

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

I submitted a simple offer through my real estate agent (property was agent owned as well), and it was accepted within a couple days.

How did you finance this deal?

VA loan financing. I am thinking I might remove all leverage in the future, but for now, it's helpful.

How did you add value to the deal?

I am currently in the process of fully furnishing the residence, and will be living in it for a significant portion of the year. Sale required repair of the chimney and a few windows, paid for by the seller. That alone was a value-add of approximately $4,000. I may fence in the massive backyard in the near future.

What was the outcome?

I now own the property, and am getting it fully ready for Airbnb. Once it's ready, I'll be able to Airbnb it for between $225 and $350 per night! It's an incredibly nice neighborhood on 0.5 acres! I already listed it only partially furnished and it's already renting out for $80/night.

Lessons learned? Challenges?

Sometimes you just need to go for it and don't split hairs on the initial profit. Also, you get what you pay for. This property being super nice leads to super nice tenants/guests. They will pay more for renting the property, and take better care of it. Not only that, but through Airbnb, they are much more likely to communicate with you and give you decent reviews.

YOU GET WHAT YOU PAY FOR... USUALLY.

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

Colleen Carr: real estate agent
Steven Leopold: property manager
NFM Lending: loan provider

[Chris Stroup]

That's awesome!  Airbnb's are great.  I really like that the cleaning crew will have eyes on the property to check for any issues on a regular basis.  

Are you going to use a property manager or self manage?