Investment Info:
Other buy & hold investment.
Purchase price: $180,000
Cash invested: $75,000
I purchased land near the ski resorts to build short-term rentals. I am working to get plans for 2 short-term rental units on the property and build them out. The plan is to complete construction in the next 1-2 years and rent them out on airbnb
What made you interested in investing in this type of deal?
The area near the ski resort has few off-site accommodations and no hotel. To stay on site, it costs $500 / night. Short-term rentals 3 miles away are going for $200-$250 / night and are always fully booked year-round.
The area is near state parks and other recreational areas that bring visitors year-round, and the Pittsburgh area is growing.
How did you find this deal and how did you negotiate it?
Found someone selling a 4 acre lot with an old farmhouse.
How did you finance this deal?
Paid cash for the land, and I have started to work with an architect, surveyor and septic designer on the build out.
How did you add value to the deal?
Did the demolition of the house and the construction of the driveway myself.
What was the outcome?
Still in the early stages - it will probably take 2 more years to realize the value.
Lessons learned? Challenges?
It takes a long time to develop land from scratch it is hard to do with all of the government regulations and codes.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I like working with the Architect we picked. She is old-fashioned (using paper and pencil), but she is not super expensive and works to produce the plans quickly.
She is:
http://dragonarchconsulting.com/
