Beverly Buy & Hold Turned Brief Airbnb With Ultimate Sale - 2020

[Cara Lonsdale]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $55,100
Cash invested: $10,000
Sale price: $254,250

Cute 3/2 with 1 car garage that we picked up, cleaned up and rented long term. In 2019, we decided to sell off for profit, so we gave the Tenant notice to vacate, and we had it painted inside and out, redid the landscaping to include grass, and did some minor remodeling throughout. But there were not alot of comps in the immediate community (everyone loves these homes and never sells!) So, we decided to first sell a couple of flips that we had in process first to drive prices up. While we waited, I threw it up on Airbnb just to see if we could create a revenue stream while it was sitting. This proved to be a success. In late March of 2020 we took our last guest and elected to withdraw it from Airbnb due to COVID. We put it on the market right before Summer and it sold right away.

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

Cheap acquisition in 2010. Rental rates were strong and provided excellent cash flow for years. Never had trouble finding tenants.

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

This was a traditional MLS listing.

How did you finance this deal?

traditional financing with 25% down.

How did you add value to the deal?

Cleaned it up, painted it inside and out. Remodeled the backyard landscaping, replaced all of the door hardware throughout, and added a new bathroom vanity in the hall bath. Also refinished both bathroom tub/showers.

What was the outcome?

Long term tenants followed by brief STR on Airbnb, then sale with great profit.

Lessons learned? Challenges?

For this one, we really didn't do too much to turn it over. We found that the right location in the right market will sell as long as it is clean and shows well.

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

I am an agent, so I did all of the negotiating on both sides of the transaction.