My first Home turned investment property

[Charity Farrell]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $109,000
Cash invested: $62,827

My first Home turned into an investment property

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

I am a musician by trade and so spend most of my time on the road. I originally purchased this house to be nearby my grandmother in her last few years but realized quickly that it was a prime area for short term rentals as there are no zoning rules or permits necessary etc. Its been very lucrative as a short-term/mid-term rental property

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

I bought it sight unseen when I found it on Zillow the day that the listing was opened. It was a bit of a nightmare negotiating as I am considered self-employed and of course during 2020 the entertainment industry was completely shut down. I got incredibly lucky that the gentleman trying to sell it "had a gut feeling" he said that he should hold onto the property until the underwriters came back with a yes for me. Very grateful to him!

How did you finance this deal?

I had quite a bit of money saved up from years of traveling and not really paying any rent as I was staying in hotels and accommodations paid for by my tours. That was the largest part of my financing but in addition I did end up having to ask my older brother to co-sign for me because the underwriters just could not trust the 1099 contractor status given the volatile industry I was in during 2020.

How did you add value to the deal?

My brother owns a landscaping company a few hours out of town so we did a complete overhaul of the backyard area. I also did a full cosmetic update of the sunroom and kitchen and am slowly working my way through the house to do the rest of the rooms as well.

What was the outcome?

House hacking is the way to go for sure if you are a traveling artist. I have been able to supplement my income between gigs with the profit from the short term rentals and I have been able to pay down my mortgage quickly enough that I am on track to completely own this property outright by no later than the end of 2027.

Lessons learned? Challenges?

There were some bumps along the way. I am grateful that I am very much a type-A human and have had contracts for every single stay at the property. There have been a few times that has saved me with people ending their contract early, or minor repairs that they didn't want to pay for etc. Overall though it's not been anything too terribly challenging. I am definitely ready to get my feet wet with another property.

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

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