Home converted to Rental Property

[Mary Fraga-Kingsbury]

Investment Info:

Single-family residence buy & hold investment.

Converted my personal residence to a rental property about 2 years ago. Renovated it and listed it as a HUD home.

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

I was moving out of state and wanted to increase my portfolio. Since I am almost done paying it off, I decided to add it to my retirement portfolio. My goal is to have 10 units in the next 5 years.

How did you finance this deal?

Original finance is a regular mortgage since I was living in it for about 15 years.

How did you add value to the deal?

I converted the formal Living room into a bedroom that can also be used as an office. I updated the kitchen and put new flooring. I used tile instead of carpet since it is going to be a rental. I also updated one of the bathrooms.

What was the outcome?

It is rented through the HUD program. So I am assured that the rent will be paid and that the property will be taken care of.

Lessons learned? Challenges?

The HUD process was lengthy. I am learning the system and might add more properties. I also had challenges with the contractor. Took longer than promised. I will add contingencies for not meeting deadlines and bonuses for completing early.