Investment Info:
Single-family residence buy & hold investment in Austin.
Purchase price: $340,000
Cash invested: $150,000
Premium quality AIRBNB making above average returns for it's locale.
What made you interested in investing in this type of deal?
I wanted to participate in Austin's 30 year growth story, and to do it with high cash flow as well.
How did you find this deal and how did you negotiate it?
I found a dilapidated home, stuck in the 80's but not the cool 80's, and offered more than it was worth when prices were escalating quickly during COVID. 20 offers were being made per deal at the time. However, my Cash Flow estimates allowed me to pay more, of course provided my design was unique and attractive to women. Also I chose a home with a converted garage apartment for extra Cash Flow, and also next to a nature preserve which is key in my marketing.
How did you finance this deal?
30 yr fixed, 10% down
How did you add value to the deal?
I designed a vacation rental that women going on vacation aspire to: simple, elegant, and clean. Why?? Because their own homes are rarely so, in fact they - and most of us - live in some clutter, and always a bit behind on cleaning. Women are overwhelmingly the ones who choose where families stay, my marketing is to women who want to 'get away'. Also, I allow increased capacity to 11 guests, every guest past 6 is charged $50/day.
What was the outcome?
charging above average rates for my area
Lessons learned? Challenges?
That when you are rehabbing and creating a business during a pandemic, you have to persevere, and fill the gaps, despite shortage of labor and materials, keep the vision and fulfill it. Moto: "no empty days"..which means the project moves forward no matter what, whether workers are there or not, rain or shine. I will gladly work early and late to fill gaps, knocking down walls, or feathering in a newly patched and scraped ceiling, I am the final stop gap to my rehab.
