Primary residence turned first rental!

[Josiah J Hein]

Investment Info:

Single-family residence buy & hold investment in White City.

Purchase price: $185,000
Cash invested: $10,000

Bought as a primary residence in 2017, did a light interior remodel 2020 and made it our first rental. Have been self managing and just did a cash out refinance on the property in 4/2021, pulled $50k out and the house payment only went up $50/mo and still cash flows around $800/mo. This is how I got absolutely hooked on R.E. investing!

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

R.E. investing has always been me and my wife's goal!

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

Bought off MLS with a R.E. agent.

How did you finance this deal?

30yr fixed conventional loan.

How did you add value to the deal?

Bought under market value, replaced flooring with LVP, painted interior, vanities and kitchen cabinets.

What was the outcome?

Was able to rent out for $1,800/mo, cash out refinance and pull $50k equity out as well as still cashflow around $800/mo.

Lessons learned? Challenges?

It's cheaper to higher a professional to get jobs done than it is to try to do everything yourself and deal with extended hold times and taking away from family/life/ other more productive business activities.

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

Yes.