Primary turned rental - Accidental landlord, on purpose

[S Michael Nathan]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $245,000
Cash invested: $15,000

The one that started it all... lived here 2009-2014, have rented since for average of $750/mo positive cash flow. Got engaged and moved to city near her work, pretty typical accident landlord story except I had always planned to hold as long term rental. I call it being an accidental landlord, on purpose... There's been some hiccups along the way but all in all it's been a happy planned accident.

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

Passive cash flow (Rich Dad, Poor Dad)

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

MLS, Short sale. Former agent negotiated through a long short sale process, lot's of "hurry up and wait". After a number of months I happened to go on vacation, while there I decided I did not want to remain in holding pattern and once I got home to tell my agent to pull the offer. Flew home, touched down and turned phone and had a message from realtor waiting for me that offer had been accepted.

How did you finance this deal?

Traditional finacing, 30 yer at 5.375%. Refi in 2013 to 25 year at 3.5%. Dropped PMI and lowered monthly mortgage by appx 700

How did you add value to the deal?

patience through downturn

What was the outcome?

+$750 month cashflow plus $250/mo prinicple paydown