Successful Short Term Rental

[Kerry Johnston]

Investment Info:

Single-family residence buy & hold investment in High Point.

Purchase price: $190,000
Cash invested: $50,000

Contributors:
Ryan Johnston

Successful Short term rental in High Point, NC. The home is a historic home in the historic district of High Point, NC. We added a full bathroom, renovated the kitchen, replaced all porches in the home and updated the home throughout. All design and décor in the home was done by us.

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

My husband and I have another home in High Point that is also a short term rental, when this one cam on the market (perfect location) we knew it would do well.

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

We saw on the MLS and notified our realtor immediately - realtor negotiated.

How did you finance this deal?

Conventional Lender

How did you add value to the deal?

Renovated and upgraded the home throughout

What was the outcome?

High earning short term rental

Lessons learned? Challenges?

Dealing with contractors is hard, find multiple good contractors.

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

YES! I am a licensed Lender in the Charlotte area licensed in NC and SC and we used my company for the financing and a local realtor in the High Point market.

[Dmitriy Fomichenko]

@Kerry Johnston seems to be nice investment, congratulations!

[Greg Pawluk]

Nice work...So STR are seemingly increasingly profitable in my market (in RTP area). I don't utilize them myself, so I've always found it hard to believe that, that many are using VRBO/AB&B, etc, all that frequently. Obviously no guarantees, but are there down months to these STR's? My biggest concern is not covering the loan for multiple months. Or is it pretty steady? I am interested in doing a BRRRR, but with STR instead of long term. Just curious. Thanks.

[Ryan Johnston]

@Greg Pawluk. Hi Greg. Our properties have been very consistent since we started a couple years ago. You will see much greater returns with STR, however it is more work. With that being said, most of the work is done up front. Staging the house, finding reliable cleaners, and putting the proper systems in place. Anybody can throw a listing up on Air Bnb/VRBO, but the truly successful one's treat it like a business. Would like to think we fall in to this category. Please let us know if you have any additional questions. Happy to help.

[Greg Pawluk]

@Ryan Johnston Thanks Ryan.  Great work.  I am getting settled with the first.  I will be looking for number two soon.  I will definitely be considering this strategy.  

[Ryan Johnston]

@Greg Pawluk Good deal.  Here's some systems that I swear by.  Essential in my opinion:

Your Porter: Automatic Guest Messaging, Calendar management, etc.

Turnover Bnb: Automatically notifies cleaner of project.  Pays them automatically as well.

PriceLabs: Dynamic Pricing. Gathers data of nearby STR, and suggests nightly pricing based off demand, etc.