First Home Turned Rental

[Carolyn Busby]

Investment Info:

Single-family residence buy & hold investment.

Single family home. Good starter home. Some updating, new roof, and new a/c was needed. Currently being rented.

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

It was actually it first home. But as the family grew, so did the space we needed. Rather than selling it we kept it.

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

At the time it wasn't the best deal. Paid pretty close to what appraiser said home is worth.

How did you finance this deal?

FHA through a bank

How did you add value to the deal?

The home needed a little work just to make it a good rental. Painted, new flooring through it home. New air conditioner and new roof.

What was the outcome?

Had a tenant in home upon completion of things listed above.

Lessons learned? Challenges?

This property was initially going to be a lease to own. The guy lived in home for there years with very little care to home and ultimately couldn't afford the rent, much less have things in order to purchase. We ended up eating the cost of fix up. What we learned is in business, you can't make bad financial decisions to attempt to help others. Also the importance of screening your tenants properly.