All Forum Posts by: Javan Singleton

At 20 years old I purchased an off-market single-family house in a highly sought-after area in Columbus, Ohio. I renovated the walkout basement into a studio apartment and currently use it as an Airbnb, but I am slowly transitioning to a mid-term rental. The property was purchased off-market and significantly under market value, I believe that after my forced appreciation I have over $70,000 of equity in the home. The house cash flows about $1,000 a month, but I could get more by renting out 2 of the other empty bedrooms.

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

Graham Stephen on YouTube and house hacking my primary residence

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

I purchased this house from the local farmer where I get groceries from his farmers market.

How did you finance this deal?

Since I was a first-time home buyer this is my primary residence, I used a conventional loan and put 5% down. I had to have my father cosign, but all the money invested was my own.

How did you add value to the deal?

I have renovated the bathrooms and converted the walkout basement into a very nice studio apartment which has become a highly-rated Airbnb.

What was the outcome?

I have met some really cool people and have not paid any housing expenses out of my own pocket for the last 2 years. I am an Airbnb SuperHost and have started taking steps to do real estate full-time.

Lessons learned? Challenges?

If it doesn't make sense, it doesn't make dollars.

Just my 2 cents from being in this industry for 10+ years, hundreds of deals, dozens of flips, 15+ airbnbs. I would make sure that your conversion of the apartment is permitted and recognized legally. In addition I'd check your insurance to make sure you are covered on STRs plus I would recommend transferring it into a land trust and out of your personal name if you bought it with your own income. You have a lot of liability right now especially if an unpermitted dwelling unit had a fire (which as a demolition contractor I've seen substantially) and torched your house, you may not be covered. I know it's not fun and sexy to bring that up but around columbus there's tons of airbnb abuse and I'd just make sure from an asset protection, liability, and worst case scenario situation you are covered because the last thing you want to do is get stopped dead in your tracks after one deal.

Wow. A ton of good advice, thank you. I have taken the correct legal precautions regarding permitting and insurance, and I will definitely be looking into land trusts vs. LLCs.

1 Vote

Investment Info:

Single-family residence other investment.

Purchase price: $260,000
Cash invested: $15,000