Short Term Rental Vacation Home

[Kathy Scott]

Investment Info:

Single-family residence buy & hold investment in College Station.

Big Oak Farmhouse Short Term Rental. Darling farmhouse that has been completely remodeled and is like a new home! This home boasts of southern charm! Shiplap walls are featured in all the living/dining area, kitchen, and all 3 bedrooms. The tin ceiling in the kitchen, leathered granite countertops, farmhouse sink, new cabinets, and stainless appliances give the home a farmhouse charm and modern functionality.

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

This property is located next to another home that we own. It was in terrible condition and my husband and I knew that we needed to buy it and fix it up. The numbers made sense to purchase and remodel.

How did you add value to the deal?

The structure of the home was solid, even though the farmhouse dates to early turn of the century. The hand hewn walls were in good shape and the foundation was good. The home was completely remodeled, including new plumbing, and electric. We added a bathroom, opened the dining/kitchen wall, replaced windows, and repositioned the kitchen, which all added great value to the home.

What was the outcome?

The home turned out fantastic and is a vacation rental. It earns more rent income as a short term rental than as a long term rental, and the bonus is that it transitions as a guest house for family and friends.

[Kathy Scott]

David, the property was not off market. The seller wanted more than we thought it was worth. We waited until she reduced the price and then made our offer. It was probably worth more to us than most people, because it's located next door to another property where we were building a home. None-the-less, it still turned out to be a good return for us. We paid $136,000, put 50K into it. Last year, it brought 36K in gross rent. After expenses, the return for 2020 was 17%.