First Investment! Converted private residence to my first rental :-)

[Darek Drake]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $187,000
Cash invested: $14,000
Sale price: $187,000

3/2 SFH. Acted as primary residence until 10/1/2022. Currently using as midterm rental, primarily marketing to travel nurses/professionals as there are several hospital systems in the area.

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

I was looking for my first home in 2019. After 3 years, I took a new job in a different city and thought it would be a great investment to keep the home and rent it to travel nurses.

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

I found it and negotiated with a great local realtor and friend.

How did you finance this deal?

Conventional loan with a "gift" from my mom to cover the down payment and closing costs.

How did you add value to the deal?

The home was renovated to B level prior to purchase so it is already in pretty good shape. I have just maintained the property. I have made a few minor repairs, but aesthetically, I removed the chain link fence in the front to open up the view.

What was the outcome?

My monthly mortgage is about $1250, and leaving the home furnished, rent comps for my home were renting for $2400-$2500/month, so I was able to list the home and get tenants for double my mortgage!

Lessons learned? Challenges?

My current challenge is getting funds for my next deal. I was going to either do a cash out refi or a HELOC. I was leaning towards the HELOC as I could have interest only payments whenever I borrow. However, having recently changed jobs I'm struggling to find a lender that will approve either option until I have time in the new job (18-24 months). Additionally, I've been told that HELOCs are difficult to secure if the home is not your primary residence.

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

If you're in the Tampa, FL area, I strongly recommend Neill Boyd from the NB Home Team. His broker is Compass and his team is excellent. I say that not only as a client, but also as a former member of their team (I was a realtor for 2 years with them). They are top notch in Tampa.