All Forum Posts by: Kyle Branum

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $55,000

We purchased over first house just before we got married in 2006. We were kids (21 and 18) and didn't want to rent. We bought a foreclosure and with lots of help from family and friends we completely gutted it and basically built a new house. Fast forward to today and we now cashflow $1,900/mo as a STR.

What was the outcome?

We bought what we could afford very young and honestly couldn’t afford to move out of it and buy anything else for 13 years. Now it’s the first listing on Airbnb in our city and the equity is going to completely change our financial future.

Lessons learned? Challenges?

Equity built over time is very powerful. It’s not fast but grows wealth exponentially. We didn’t know anything about real estate or investing, we just couldn’t afford anything else. I read Rich Dad Poor Dad a couple of years ago abd real estate is all I think and learn about anymore. It’s become very fun to me.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $55,000

We purchased over first house just before we got married in 2006. We were kids (21 and 18) and didn’t want to rent. We bought a foreclosure and with lots of help from family and friends we completely gutted it and basically built a new house. Fast forward to now and we’ve moved out and have been operating it as a short-term rental since August 2022. We’re generally the first search result on Airbnb in our small city. The house is paid off and is worth $250k-$270k and I’m now trying to figure out the best move to make with the equity.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $158,000
Cash invested: $60,000

866ft2 3 bed, 1 bath A-frame house that I’m renovating to use as a short-term rental. I’ve added 100ft2 and a master bath to make it a 3 bed, 2 bath.

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

Love a frame houses, purchase price, and proximity to a successful short-term rental I currently own.

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

MLS. I had to borrow and make a cash offer around 24% over asking because the price was well below anything available in our area. It was underpriced.

How did you finance this deal?

Cash with plans to finance after renovation.

How did you add value to the deal?

Added 100ft2 and a complete makeover.

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

Bjorn White - Keller Williams Greater Downtown Chattanooga

Sorry for the long post.

I am new to real estate and looking to grow my portfolio.

WHERE I CURRENTLY STAND

I have a house that we have operated as a short-term rental since August 2022. I grossed ~$29k and net somewhere between $22k-$23k the first year. I have no mortgage on it and it would sell in the $250k-$270k range.

I recently purchased another house and am currently remodeling it with plans to operate as a short-term rental as well. I did a cash purchase with borrowed money and will get a mortgage once the renovation is completed. This one will be a bit of a failed BRRRR because I want it to be really nice since I plan to use it as a short term rental, so I'll likely be leaving $20k-$35k in it depending on the appraisal. Purchase price: $158k, after renovation will probably be in it for around $215k. I'm hoping for a $250k appraisal, but that's hoping.

MY QUESTION

Next steps from here… The house with no mortgage is successful on Airbnb and we are usually the first listing in search results in the area. The house isn’t in a great neighborhood so I’m not sure how appreciation will be for it versus other property elsewhere in the long-term. I want to utilize the equity in it to buy more, but I’m not sure if it’s better to cash out refinance and hang on to the successful Airbnb or sell. Any specific direction for what I should buy with what I have available? 

Honestly, I would love to find a mentor to walk with for a bit to help me get to the next level with what we have.

Thanks for any advice!