Hey everyone, if you have some time, could you give me some feedback on my entry into real estate game plan? (Specifically STR's) Any advice would be greatly appreciated.
I live in Hudson NC about 20 minutes away from a small town called lenoir. Lenoir sits at the feet of the Appalachian mountains., only 20-30 minutes away from blowing rock, banner elk and Boone.
A lot of people travel out here during the fall (changing of the leaves) and winter (snow sports).
Anyway, my game plan is to
- buy a fixer upper in lenoir on 2 acres of land. (Great deal $80k) I’ll pay cash.
- Renovate the house ($15-$20k) Ill do all the work myself with the help of a few friends.
- Rent out the property ($900 per month)
- Refinance the property
- Use that money to build 3 tiny house cabins on the opposite end of the 2 acres.
- List them on Airbnb for $115 a night
- Ask renter if he would be interested in free rent in exchange for cleaning the Airbnb’s and other useful tasks.
That last one would be icing on the cake.
More info...
Similar Airbnb’s in the same area charge $130 per night.
Average Airbnb daily rate is $225
Average occupancy rate is 58%
A bit more info, sorry.
New house value after renovations would be around $120k
ARV is about $95k, I would probably only pull out $60k to build the tiny homes.
I also checked tiny house laws in the area and we are good to go.
So what do you think, does this sound like a solid strategy?
