Update: Converted a LTR to a STR

[Justin Melendez]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $48,000
Cash invested: $25,000

Our first driving for dollars deal.

Update: Converted into a short-term rental (AirBnB)! checkout out updated pictures.

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

This deal was located in a neighborhood that had a proven track record of good STR performance. When we bought it we knew that we could convert it to an STR once the current tenant moved out.

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

Driving for Dollars using Deal Machine. We cold called and sent mailers to the owners. The owner was tired of being a landlord and had bad experiences with their property manager. I was willing to buy this property tenant-occupied as well as purchase it as-is.

How did you finance this deal?

Cash

How did you add value to the deal?

Complete renovation. New kitchen, updated bathroom, refinished floors, and furnished.

What was the outcome?

As I am writing this, this is our first month as an active STR and we pulled in gross rents of $2300 in 3-weeks. Note, STR's come with more expenses than a traditional LTR so about 40-50% of that will be profit.

Lessons learned? Challenges?

We wanted to do something different for this project, this was my "experiment". So what does that mean? I went looking for vendors who were unknown to the "local investor community", aside from our contractor, we tried to pull our resources from unfamiliar vendors. This approach came with inherent risks that we were willing to experience. The overall experience was very positive and we built some great relationships and introduced people to a new aspect of their own profession! 10/10 will repeat

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

Short Term Rental Property Management (Co-host): StayK Rentals https://www.staykrentals.com/ - Philippines-based group of professionals that run the day-to-day operations of the property for only 12% of revenue!