Primary TX residence turned rental

[Liz Ridgway]

Investment Info:

Single-family residence buy & hold investment in Fort Worth.

Purchase price: $242,000
Cash invested: $11,000

Purchased as primary residence, converted to rental at 2 year mark

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

Focused on a primary residence we liked, modest home in great neighborhood

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

Real estate agent/MLS. Home had multiple offers, our letter to owner sealed the deal even though offer was not the highest

How did you finance this deal?

VA loan allowed for no money down. Still put 5% plus closing costs

How did you add value to the deal?

New energy efficient a/c and heat pump (paid cash). Sweat equity on painting, landscaping, general curb appeal

What was the outcome?

Renter found within 2 days of listing, will stay indefinitely. Positive cash flow that should reach the 1% rule in 5 years. Appreciation exceeds inflation

Lessons learned? Challenges?

Did not meet the 1% rule. We were more focused on a home we personally liked along with the hype around the appreciation in a booming market