All Forum Posts by: Kelly Johnson

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $60,000

Complete renovation and using it as a short term rental in a small rural vacation destination spot.

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

I knew the area well and how much traffic it would get at certain times of the year. I liked the location personally and wanted to use the space personally as a quick get away.

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

Initially it was a listing call and the more I talked with the Seller and viewed the property I decided to make him an offer that would be quick for him and net him more than if we had listed it.

How did you finance this deal?

Cash

How did you add value to the deal?

Renovation - nothing had been done to it since it was built in the late 70's except for a porch being enclosed.

What was the outcome?

It has taken off quickly as a STR and I actually haven't been able to enjoy it much myself because it books so frequently but it's giving us the opportunity to get some cash back at a faster rate than I anticipated.

Lessons learned? Challenges?

The challenge was the timeline to get it done because contractors do not frequent this area on a regular basis. Since I acted as the GC, it was a big waiting game to get things done.

Thank you everyone for the responses, you''ve pretty much confirmed what I thought should happen. 

We are rehabbing our first STR and inherited a bunk bed with the purchase. This is only a two bedroom one bath cabin near a state park and family oriented tourist attraction, so my question is, should I keep the bunk bed (twin over twin) or should I put a queen size bed in its place? The other room will also have a queen bed.

@Avrom W. Smith I look forward to the phone call!

How often are you checking on the upkeep of common areas? I've found myself in a position where I am now renting by the room but only because the 3 initial military members I rented to didn't all have the same orders, so one has left and another is soon to be on his way out. I think I could keep the home relatively full by targeting this market but unlike the first 3 tenants that were familiar with each other, now I'll need some ground rules for how each tenant should be responsible for common areas. Anyone have some they want to share?

I try to make my rates competitive with what the market will bear, not all of my tenants are military. I believe military get to keep the difference if they don't spend their allowance so they are still savvy about what the cost is. 

I know someone who is in reconstruction after disasters and definitely states this is where the money is. Insurance companies have to find them a suitable home that closely matches what they can no longer live in. I've recently reached out to a disaster service company and an insurance company to let them know what I have available for inventory for future placements. No calls yet but it has only been a few weeks. I would suggest reaching out to your own insurance agent and asking about this and how to get on the list as well as with any other agents in your area or disaster services companies, like a ServePro.

I have a current MTR in Columbus, GA that is rented to military soldiers. Been great so far because they stayed longer than anyone else and now 2 are leaving and the one remaining is working on getting in 2 more roommates. I'm thinking this can be pretty muich self sustaining if at least one renter still remains and needs to recruit others to cover rent. 

I'd also add that once you have your photos, put together an attractive flyer (via canvas maybe) and spread the word digitally to any local real estate agents who may have buyers or sellers in transition and could need anything from one week up to several months for temporary housing. You can also drop off printed flyers to local brokerages and ask them to post in their copy room. I have 2 MTR's and I've had luck with these type of clients especially on short notice to fill a vacancy.