From abandoned mountain home to popular vacation rental!

[Matthew Powell]

Investment Info:

Single-family residence buy & hold investment in Welches.

Purchase price: $158,000
Cash invested: $60,000

Our lovely Mount Hood Chalet is located in Welches, Oregon. This house was bought through an auction. It was our first experience using Private lending. After some elbow grease and a lot of learning, we were able to get this home back to a beautiful rentable state and on a long term loan with an ARV of $325k. Given it's location, we decided to jump on the vacation rental train. The cashflow fluctuates from month to month depending on the season.

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

My wife is a principle broker and she had a few clients that owned short term rentals at the coast. She saw the potential for investing on a short term rental based off of their experience. This particular property needed a lot of work and the auction was starting at a low price.

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

This property was listed on the MLS as an auction property. We played the back and forth bidding game through the online auction.

How did you finance this deal?

We used a Private Money lender. This was a cash only deal to the condition of the property.

How did you add value to the deal?

COMPLETE renovation. The home didn't have working electrical or plumbing. The entire home was gutted and started from scratch.

What was the outcome?

This property now acts as a short term rental on a very popular mountain in the Pacific Northwest.

Lessons learned? Challenges?

It's important to really stay on contractors and hold them accountable. We had several issues with a couple of the contractors that delayed this process by several weeks.

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

My wife Leilani Powell made this deal possible. Without her this property would not have been in our portfolio.