Newest STR to the Portfolio

[Joseph Bafia]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $207,000
Cash invested: $43,000

Contributors:
James Overton Winston V, Ryan Howell

This will be my 6th property and 4th STR. Small mountain cabin in Burnsville, NC.

Should make a great vacation rental!

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

Had success with our other STRs and have some strong systems in place. Looked for something that was geared towards a couple or small family. Good price point in a hot market.

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

A terrific agent (Ryan Howell) helped me find it on MLS. We offered on it 3 separate times and it wasn't until the 3rd time that we actually got our offer accepted. Also got some insight from a fellow BPer that I've connected with who's in that market already to advise on pricepoint.

How did you finance this deal?

First time using an asset based lender. I've financed all sorts of ways and this was a fairly smooth transaction.

How did you add value to the deal?

Automating several processes, incorporating technology (like keyless wifi door locks), and self-managing. We'll upgrade a few things, but much of the furniture came with it.

What was the outcome?

Just got it, so next steps are to clean, organize and then list. No outcome yet, but looking forward to seeing what it can do!

Lessons learned? Challenges?

Learned that it's ok to offer and purchase without seeing a property. Have a good realtor who knows what you want, and they can be your eyes. Learned that building a network of business people (and friends) who can share ideas and resources also takes pressure off. Challenge was appraisals in rural areas are slooooow, but we got it done.

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

Oh yeah.
Ryan Howell - Agent
Tyler Knoll - Visio Lending
Bob Zink - Insurance Agent