House #3 - My first Air BNB

[Steven May]

Investment Info:

Single-family residence buy & hold investment in Kansas City.

Purchase price: $138,000
Cash invested: $41,000

Bought this little Waldo bungalow gem about 10 houses down from my personal residence. This was an elderly lady who had it as a rental & way below market rent. We agreed on a price and she wanted to do a seller finance deal to spread out her capital gains bill.

Put 20% down - 5 year note at 4.5% interest

Purchase: $138,000
Rehab: $7500 (Cosmetics & opening up 1 wall)
Furnishings: $3000

Renting on Air BNB - Gross income $2000-2000/mo

Coc of 18-25% (depending on month) - Forced 20k in equity

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

Off market. Lady posted in a local FB group

How did you finance this deal?

Seller financing. 20% down out of pocket

How did you add value to the deal?

Full rehab

What was the outcome?

Cash flowing STR

Lessons learned? Challenges?

Furnishing a house takes longer than you think if you choose to stay with a theme throughout.