Personal Property Turned into Rental

[Laura Gray]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $306,000

Cash invested: $15,000

My fiance and I bought our first home in March 2018. We planned on it being our primary residence for at least two years but that isn't what happened! In the basement of the property we built a little kitchenette and had a couple who rented it out for 3 months. Our mortgage is $1750 and month and we got that couple to pay us $1200 a month in rent. After the 3 month lease we decided to buy another property and move out of this property. We get $2200 in rent per month for the entire house.

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

We bought the house at a great price and great interest rate so we knew the numbers would work if we could rent it for $2200. We figured a SFH is a great start in REI and it is only a mile from our other property so we can keep a close eye on it and be there quickly if needed.

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

I found the deal on the MLS. It had multiple offers. We actually lost out the first time around but the first Buyers bailed at inspection and we were the first back-up offer so we quickly went under contract.

How did you finance this deal?

It was our primary residence at first so we were able to do an owner-occupied loan from a mortgage broker.

Lessons learned? Challenges?

We painted every room in the house...all 4 bedrooms we did different colors. We were so excited for our first home we wanted to make it "ours." Terrible mistake. Painting took days, cost a lot of money, and now we don't even live there!

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

I was the real estate agent for the deal!