Personal Residence Converted into First Investment Property

[Justin Velasco]

Investment Info:

Single-family residence buy & hold investment in Norfolk.

Purchase price: $135,800

Approximately 1,200 sq. ft. 3 bedroom, 1 bathroom single family house with sunroom, deck, and fenced in yard. HVAC and half-bath can be added to sunroom, which would increase sq. ft.

I originally purchased this as my first residence, but began renting it out once I moved into a home owned by my significant other. I refinanced Aug. 13 to a 15-year mortgage with the intention of accelerating the rate at which I build equity.

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

I purchased his home as my personal residence, without any intention of converting it into an investment. However, my significant other and I moved in together, and both owned homes.

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

My realtor showed me the home as a decent option for a starter home, as he felt we could get a good deal on it.

How did you finance this deal?

Originally, through an FHA loan, refinanced to a 15-year fixed conventional loan.

How did you add value to the deal?

So far, minimally.

Lessons learned? Challenges?

This house would not have been the best investment for positive cash flow if I had been looking at it as an investment when I purchased it. However, I am attempting to take advantage of the situation of my family coming together and owning two homes, by turning this one into my first investment property.

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

Ben LeBrun was an outstanding agent that I have recommended to several others. Unfortunately for me, he has relocated to the Northern Virginia area. However, I would still highly recommend him to anybody in that area!