Long time primary residence finally cashflowing

[Toby Moore]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $260,000
Cash invested: $20,000

Purchased in 2009 as residence and have lived there a total of 6 years since purchase. Currently refinancing for cashflow.

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

Looked for a home in a good neighborhood with good schools for possible future rental opportunity.

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

MLS.

How did you finance this deal?

VA Loan with little down.

How did you add value to the deal?

Added a swimming pool, new appliances, new hot water heater, new laminate flooring, granite countertops, hardware on kitchen cabinetry, and sprinkler system and grass in back yard.

What was the outcome?

I have over $100,000 in equity.

Lessons learned? Challenges?

I refinanced in 2016 and took the loan from 23 yrs to 15 yrs at a 2.99% rate. Though this was a great way to build equity quickly, once I moved out I was at a negative cash flow of about -$300 a month. This is an area where the home value has only increased $10,000 over the last 10 years, but this house has never sat empty so I will start getting cashflow from it even though it is a small amount and maybe look to sell in a couple of years. I have a home warranty which has been a huge benefit.

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

Paul Cunningham is one of the best realtors in Yuma, AZ and Julie Johnson is an amazing property manager.