Advantages include reducing your living expenses while renovating and potentially being eligible for the capital gains exclusion if you live in the home for at least two years.

Beyond the lessons from the projects themselves, building a business that’s efficient, diversified, and focused on the luxury market has been a game-changer.

Make sure to prepare a professional proposal, highlight your STR track record, and be transparent with your financial projections.

Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).

Right now, I’m actively learning and planning to start my first projects this year.

Purchased on 2/1/2024 for $58,500, we invested $55,000 in renovations to enhance the property’s appeal.

The best way to do this is to renovate a unit or two to the specifications to bring it up to market.  

Purchase price: $170,000 Cash invested: $60,000 Sale price: $280,000 It was my first project.

I plan on doing most the renovations myself which requires equipment (such as tools).

It’s best to divide small renovation projects into 3-4 milestones.