All Forum Posts by: Patricia Taveras

The horror stories really do get all the traction, so let me voice the opposite. I personally have had an incredible experience with Airbnb and am truly grateful for the platform they created. It has helped me build wealth through real estate and quite honestly, to change my life. I have been hosting there since 2019. I have 5 properties of my own listed there, and I currently manage an additional 25 listings for others on Airbnb (plus VRBO, Booking.com and Furnished Finder) as a licensed real estate agent. I cannot count the number of guests I have hosted. I have never been scammed out of a free stay. One guest tried, and Airbnb shut that down immediately. I have experienced damages a few times - in an incredibly small percentage of stays. The process for reimbursement is so easy through Airbnb, and I have been reimbursed for damages each and every time. I am grateful for the opportunity to tap into their giant customer base. They keep my calendars full. I have learned that most guests are pretty great, and they have money to spend. They can certainly spend it with me!

I bought the first rental I have there in 2009. Great deal, but not an intentional investment. I made my first intentional move in 2015. I currently have 2 long-term rentals and 5 short-term rentals here.

Are you investing in Fayetteville?

Hi Jared,

Thank you for the post about New Bern. I love living here and investing here has really paid off. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $45,000

Short-Term Rental

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

Already investing in this type of deal

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

My daughter and I were driving neighborhoods in the school district she wanted to be in looking for a house to move into. We found two rental properties instead. We looked up owners of distressed properties and sent them letters. We found one owner who wanted to sell two properties in the same neighborhood.

How did you finance this deal?

Cash-out refinance on two existing short-term rental properties with DSCR loans. Was able to pull out enough cash for down payments and rehab on these two houses.

How did you add value to the deal?

Installed LVP flooring throughout, all new appliances, painted, installed crown molding, changed bathroom vanities, fenced in the back yard, installed new ceiling fans and lighting throughout, changed lower kitchen cabinets and countertop, painted upper cabinets, installed two new windows in the house, changed HVAC, and furnished it.

What was the outcome?

Operating as a successful short-term rental

Lessons learned? Challenges?

It was challenging to buy and rehab two houses at once. We ran out of rehab money on after finishing the first house, and had to slowly work on the second house as we earned money. But it was worth it.

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

Aleta Ortiz of Atlantic Bay Mortgage

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $135,000
Cash invested: $45,000

3 Bedroom Home, Short-Term Rental

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

I have experience with short-term rentals in New Bern.

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

My daughter and I were driving through neighborhoods in the school district she wanted to be in hoping to find a house to move into. We found two rental properties instead. I sent letters to owners of distressed properties we found on these drives. An owner of two properties in the same neighborhood agreed to cut me a deal if I bought both houses from him.

How did you finance this deal?

My husband and I did a cash-out refinance with DSCR loans on two of my short-term rental properties. This allowed me to pull out just over $90,000. I used this money as down payment money and rehab money on the two houses I bought from this seller. I used conventional loans from Atlantic Bay mortgage to finance the two new houses.

How did you add value to the deal?

We changed the flooring to LVP throughout, painted, added crown molding, installed new lighting and ceiling fans throughout, did light cosmetic upgrades to the bathrooms, fenced in the backyard, removed dead tree from front yard, and re-graveled the driveway.

What was the outcome?

It is operating as a successful short-term rental.

Lessons learned? Challenges?

In order for the bank to finance this property we had to lay the flooring before closing. Spending $5,000 laying floor in a house that did not belong to us yet was worth the risk.

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

Aleta Ortiz of Atlantic Bay Mortgage

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $175,000
Cash invested: $10,000

Creative Financing, Short-Term Rental

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

I already had two successful short-term rentals and wanted another.

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

My neighbor approached my husband and asked if we wanted to buy the house.

How did you finance this deal?

My husband and I didn't have the means to get bank financing at the time, so we partnered with my mother. She bought it for $75,000. She paid my husband $15,000 to rehab it. We rented it from her for $900/month for a year and put it on Airbnb. A year later we bought it from her for $175,000 for $1,000/month for 0% financing. We are still operating it as a short-term rental.

How did you add value to the deal?

We replaced the roof, changed most of the flooring, painted throughout, fenced in the backyard, and furnished it.

What was the outcome?

It is still a successful short-term rental.

Lessons learned? Challenges?

When you think you can't buy a house for the traditional way through the bank, look for a creative solution.

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

Steven Bell, real estate attorney in New Bern, NC.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $10,000

3 Bedroom 2 bath home used as a short-term rental

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

I had already successfully started one short-term rental. I wanted a second one.

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

My next door neighbor asked how much to rent the short-term rental we already owned since she needed to move soon. I asked if she wanted to sell her house. She said yes.

How did you finance this deal?

Commercial 5 year ARM. We also put lien on the first short-term rental we bought since we created equity there. This allowed us to obtain 100% financing for this house.

How did you add value to the deal?

Changed the flooring, HVAC, painted throughout, and furnished it.

What was the outcome?

It is still operating as a successful short-term rental.

Lessons learned? Challenges?

I learned the power of creating forced equity in a real estate deal since it allowed me to use that equity to obtain 100% financing on this deal.

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

Union Bank, now First National Bank.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $21,000

3 bedroom, 2 bath home. Purchased with commercial 5 year ARM since we planned to use as a short-term rental.

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

I wanted more cash flow than a traditional long term rental would give me.

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

It was a vacant house in my neighborhood. I looked up the owner and sent him a letter.

How did you finance this deal?

Commercial loan. 5 year ARM. 20% down.

How did you add value to the deal?

Changed the roof, painted throughout, fenced in the back yard, and furnished it.

What was the outcome?

It is operating as a successful short-term rental.

Lessons learned? Challenges?

The bank I was working with at the time would not give me a residential loan on the house since I planned to use it as a short-term rental. So I used a commercial loan instead. I also learned it requires a lot of money, or in this case credit, to furnish a three bedroom house.

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

My lender was Union Bank at the time. They are now First National Bank.

Investment Info:

Mobile home other investment.

Purchase price: $15,000

I purchased a double wide mobile home from Craigslist for $15,000 using a 401K loan. I used a combination of a 401K and a HELOC on my primary residence to fund purchasing a lot, moving the home, placing it on a foundation, and doing a light rehab on the interior. All in, the total to purchase the home, move it, and rehab it was $44,000. I had the property titled as real estate. It is now a long-term rental.

Investment Info:

Mobile home other investment.

Purchase price: $10,000
Cash invested: $13,000

Rental Property

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

I needed a cheap place to live at the time.

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

I bought it from my landlord at the time and moved it to a lot for $100/month. I lived in it for a fews years, then later bought a HUD foreclosure to move into and rented out the mobile home.

How did you finance this deal?

Personal loan

How did you add value to the deal?

Moved it to a lot. Before renting it out, painted and changed the flooring.

What was the outcome?

I still own it and rent it out.

Lessons learned? Challenges?

I learned how to finance a mobile home and what is involved in moving one. I also learned about screening tenants and leasing when I decided to rent it out.

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

Not at that time.