All Forum Posts by: Stacy Preston

I'm looking forward to this event on September 11th! If anyone has any specific topics they want me to cover on owning vacation homes, managing them out of state, or anything specific about the Indianapolis or Smoky Mountain STR markets just let me know.

Hi Tyler,

I think house hacking is one of the best ways to start in REI. I completely agree with your line of thinking.

Not sure if you work with any investors that are looking for more house hacks, but I have a listing in Bates Hendricks that I think would be a great house hack due to the bedroom/bathroom setup (two primary suites and two bedrooms that share a Jack and Jill plus two living areas). There's also plenty of parking between the street parking and 2 car garage. 

Hi Kyle! I'm a local STR host in the Indy area. I'd be happy to answer any questions you have.

I'm looking for a maintenance person for my STR in Westfield. I would like someone that could do a monthly walk through to do things like light bulbs, furnace filters, batteries for remotes/smoke alarms and minor repairs. I would also like someone that I can send out for guest issues if needed. Does anyone have any recommendations on this?

@Beau Matlock Congrats! I also have a STR in Westfield. So much opportunity there.

@Jennifer Pauyo

I’ve noticed the same. I’m an investor and Realtor from Indianapolis. I manage all of my properties as well. 💪🏻💪🏻💪🏻

@Joseph Cacciapaglia I have a connection that also has STR's in the same area, so she helped me get an idea of what to expect for income, in addition to AirDNA. I also ran LTR scenarios to make sure the numbers would still work, which they would, just not as profitable but still ok.

@Jingru Sui Exactly what I calculated prior to purchasing.  I guess time will tell how accurate I was with predicting that.  Exciting and scary at the same time! 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $205,000

Purchased with intent of doing a Short Term Rental

https://www.airbnb.com/rooms/42249035?s=67&shared_item_type=1&virality_entry_point=1&sharer_id=71674751&unique_share_id=6f237e4d-b50d-484f-a4c2-6bbf41a2032e

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

I wanted to add a STR to diversify my LTR business. As a Realtor, I constantly see a need for Short Term Housing with clients who sell but cannot find a place to buy as fast as their home sold. Also, the location of this home is prime as it is very close to Grand Park which brings in families for sports tournaments.

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

Listed on MLS. Made a cash/as-is offer to negotiate the price down. Allowed seller flexibility with closing date. Asking price of $225K, agreed on purchase price of $205K.

How did you finance this deal?

Credit line for initial purchase, refinanced with a 30 year mortgage 30 days after closing with 30% down. Rate of 4.6% which was awesome for an investment property.

What was the outcome?

Took possession on 1/23/2020, used the first week to have the entire house painted (ceilings, trim, doors, walls) and floors cleaned. Took two weeks to furnish/decorate and knock out the rest of the maintenance items from the inspection. Had it listed on 2/13/2020 and had my first booking the weekend of 2/21. Was very proud that I was able to turn it around for rental within a month as that was my goal.

Lessons learned? Challenges?

Assembling furniture is very time consuming. I ordered all furniture online (Wayfair, Amazon, Sams) and had it delivered directly to the house which resulted in more cardboard than I could imagine. Purchasing homes during the winter gives you more power to negotiate, plus I was able to put in a lot of hours getting the house ready since my real estate business is slower at this time, yet had it listed in time for peak summer bookings.

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

I was the Realtor :-), Katie Hughes at Caliber Home Mortgage was great to work with.

Thanks everyone for your responses.  Some great advice here.  Getting excited to get started - 8 days until closing!!

My goal for 2020 is to start my first STR. I've acquired a property and hope to go live with my listing in February.

What is one piece of advice or encouragement you wish you would have been given before you got started with your first STR? Would love to consider these ideas as I'm putting together my business plan.

Sidenote:  I watched AirBNB Hell on Amazon Prime this week. That was a bad idea as now I'm second-guessing this decision.