Owner Financed, Short Term Rental

[Kathy Scott]

Investment Info:

Single-family residence buy & hold investment in College Station.

This darling dollhouse vacation rental is located next to the new College Station Police Department, Central Park, and is walking distance to Wolf Pen Creek Park/Amphitheater. To boost, it is two miles to Texas A&M University and a few blocks from the bus route. This two-story, 3 bedroom, 2 bath home has been completely remodeled. Shiplap walls bring farmhouse charm to every room. The kitchen and bathrooms have black leathered granite countertops. Brushed gold and black fixtures throughout the home tie together the modern farmhouse charm. The furniture is solid, nice, and comfortable. This vacation rental easily sleeps 8 people.

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

College Station, TX has strict restrictions against full-time single-family home vacation rentals. This particular home is located within 2 miles of Texas A&M University on a street that allows non-owner-occupied vacation rentals. After purchasing this property, comparable homes sales went up by 50K, making this a low risk investment to remodel and turn into a "themed" vacation rental. Vacation rental done right can bring 2 to 3 times the rental revenue.

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

I found this property listed on our local Bryan College Station Multiple Listing Service. It had been on the market for some time and was in need of updating.

How did you finance this deal?

This property was listed on the MLS. As a broker/buyer I made an offer to the seller through the listing agent. I offered 10% down and asked for owner financing over 12 years at 3.5% interest rate. The seller agreed and sold me this property along with another property that he was wanting to unload. The seller was interested in earning interest and he had no mortgage on the properties. I was interested in the lower down payment with competitive interest rates. The properties needed remodeling.