First Short Term Rental in portfolio!

[Olga M.]

Investment Info:

Single-family residence buy & hold investment in St. Louis.

Purchase price: $34,000
Cash invested: $49,000

• Fixer Upper
• Rehabbed
• Held as Short Term Rental on weekends
• It's my Family Vacation Home when not rented
• Worth about $175,000

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

The current political climate surrounding Tenancy and Eviction Moratoriums. Decided to explore others real estate niches.

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

I decided to become the student rather than put on my Realtor hat. I learned and followed people that are doing what I am doing. I learned from people that were willing to share. I came across an abandoned vacant house in town. I think I bought the ugliest little house in town. I decided to hire a Realtor rather than represent myself. I wanted to use someone who was a local expert and had the in with their network. It worked out. #winwin

How did you finance this deal?

Cash.

How did you add value to the deal?

Offered $10k less than asking. Took it off owners hands.
Most people thought the house was too much work.
I let them think that.

What was the outcome?

Improved neighborhood, which former owners and neighbors were elated about.
Other investors came forward to make backup offers after I was under contract.

Lessons learned? Challenges?

Someone's junk is someone else's treasure.
Nobody wants it until you are doing something with it.
What is meant for you, no one else can take.
Keep an open mind about your goals and plans.
Never thought I would be doing STR.
Challenges include(d): shortage of help, booked out contractors, distance, lumber price hit, product shortages and back orders, blowing my budget.
Sacrifices: camping out/sleeping in rehabs.
Learning KC versus St. Louis rules. Unlearn to learn.
Extremely rewarding.