Long Distance Short Term Rental Conversion

[Matthew Kresky]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $102,000
Cash invested: $30,000

This single family home short term rental conversion was by far the toughest yet. We thought we would be able to get by on our local connections without having a trusted, boots on the ground business partner. We learned many lessons here about long distance project management, trusting pictures as proof of work, and the importance of understanding all team members motivations.
After all was said and done, we were 25% over budget on the renovations and a full month past our projected timeline. With that said, the house went up for rent and is performing beautifully as a short term rental property. We are at 75% capacity and cash flowing as predicted with a healthy profit after all expenses and reserves are considered.

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

The return on investment with STR's is far superior to long term tenants.

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

Had been sitting on the MLS for a few months so we offered low and negotiated further after inspections.

How did you finance this deal?

15% down investment property loan.

How did you add value to the deal?

Kitchen, bathroom and cosmetic upgrades.

What was the outcome?

Cash flowing short term rental professionally managed.

Lessons learned? Challenges?

It is necessary to align motivations with a local partner. We need boots on the ground who care about the whole project and it's success.

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

Horton Stays Management