First home converted to rental

[Corey Hanson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $15,000

First home converted to rental

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

I knew I wanted to stop renting and start building equity.

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

I bought this as my primary residence and over time used the equity as leverage to purchase more properties.

How did you finance this deal?

FHA loan

How did you add value to the deal?

updated the home and lived in it and rented rooms out initially.

What was the outcome?

Held for many years. Recently refinanced and purchased 3 properties in Ohio and Missouri with the cash out refi. Bought a new primary residence and am renting out this home. cash flows $500 a month with new mortgage and my other properties are cashflowing an additional $2000 monthly.

Lessons learned? Challenges?

I have learned that it is important to run your investment properties like a business. Set expectations for renters.

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

I have done this on my own after initial purchase.