Short term rental win

[Lisa Renko]

Investment Info:

Single-family residence buy & hold investment in Banner Elk.

Purchase price: $410,000
Cash invested: $60,000

Purchased single family home on 3 acre track overlooking popular scenic Mtn state park (strategy to convert to STR). Negoitiated in multi-bid scenario $425k full price offer including $10k seller cash for major deck repair due at closing for an adjusted purchase price of $410,000. Bank appraisal above purchase at $455k at closing. Repairs and improvements included side porch addition + converting/adding addt'l 400 sq ft from garage to rec space @ $60k. Current ARV $690-850K. Tracking to meet gross short term rental rates of $90k annually.

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

Location and STR income potential

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

MLS, purchased site unseen; but familiar with area

How did you finance this deal?

Convention 30 yr fixed w/10% down

How did you add value to the deal?

Full reno, all new modern furnishings, added additional 400 sq ft heated space through single car garage conversion to rec space complete with glass garage door with views of mtns, large flat screen tv, bar area , foosball & darts

What was the outcome?

Gross rents tracking at $90k annually

Lessons learned? Challenges?

Working for subs in low resource mountain region proved to be biggest challenge

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

Buyer’s agent