New short term rental in Fredericksburg, TX

[Joe Rivera]

Investment Info:

Single-family residence other investment in Fredericksbrg.

Purchase price: $314,500
Cash invested: $75,000

Bought a 3bed 2 bath, 2 car garage SFH, that was used as a long-term rental. We will be rehabbing and then renting it out as a short-term rental. We are going to update the kitchen, bathrooms, put in new floors, new heating/air, roof, and update the backyard. We are going to turn the garage into an entertainment area that will include a sleeper sofa.

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

We like the short-term rental market. We were looking for a place that had year-round guests and events. Fredericksburg is in the hill country of Texas, so there is always something going on. This part of the state also has many wineries, making it a popular travel destination for a lot of Texans.

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

I found the deal on the MLS. The house was on the market for over 60 days so I put in an offer below asking. They excepted and then we negotiated a lower price after the inspection report.

How did you finance this deal?

I found an investor to put up the down payment. We are using a bridge loan to fund the remodel.

How did you add value to the deal?

I found the market and the deal. I will be the one who manages the remodel, and guest relations.