Bowstring-B-cropped-3color-transparent

Turnkey Short-term Rental

From intro email to direct off-market property in 3 days!
Strategy:
Short-term rental

About the Property

turnkey-str-columbiaSC
  • Property type: Single family home
  • Beds: 3
  • Baths: 3
  • Sq. Ft: 1900

About the Deal

Why I liked it

I happened to get linked up a STR management group because they were run by vets and operated in just about all of the markets I did.

I didn’t know what the connection was yet, but figured there had to be one. I brought up the fact that I was interested in STRs but hadn’t really taken the plunge.

I happened to be visiting one of my new markets and one of their established markets at the time, and they said they had a property I should check out.

They had managed it for the previous 2 years and it had done very well and the owner was looking to sell but they wanted to keep managing it since it was performing so well. I went to look at it the next day and went under contract the day after.

Deal structure

JV Partnership, purchased with a non-conventional 30-year fixed-rate mortgage.

Deal outcome

TBD, just went live as of November 2021.

Projected Numbers

Purchase: $199,000
Rehab/Furnishings: $16,000
Average Daily Rate: $185,000
Occupancy Rate: 70%

Actual numbers

Purchase: $199,000
Rehab / Furnishings: $16,000
Average Daily Rate: TBD
Occupancy Rate: TBD

Deal Outcome

TBD!

Lessons Learned

1. Lending on short term rentals can be “complicated,” even if you do have two years of historicals.

2. If you can, avoid using lenders and title companies who aren’t familiar with exactly what you’re doing.

3. Sometimes a slightly higher interest rate or additional one or two points at closing are absolutely worth it to make sure the loan closes smoothly and with the terms it was supposed to.