Built new, kept old home as first rental

[Brian Falcon]

Investment Info:

Single-family residence buy & hold investment in Morgantown.

Purchase price: $255,000
Cash invested: $100,000

We purchased this home and lived in it for close to 20 years. We just constructed a new home and decided to keep this one as our first rental property.

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

My wife and I have wanted to get into investment properties for years and thought this would be the perfect way to start. We took out a HELOC from our house to help pay for the new construction of our current Zero Energy Ready home (3,000 sf, 5 BR). We decided to keep the old house and rent it.

What was the outcome?

We have a great tenant in a 2 year contract and are hoping to keep them long term.

Lessons learned? Challenges?

Struggling a little paying off the HELOC, just because we got hit really hard with COVID numbers during construction but the math works and we are cashflow positive, having our tenant pay off our HELOC for us.