First House Rental Conversion

[Brandon Kirkpatrick]

Investment Info:

Single-family residence buy & hold investment in Tyler.

Purchase price: $130,000
Cash invested: $23,000

My wife and I converted the first house we bought in 2015 into a rental in Feb 2019. The location for rental property is fantastic as it's close to a growing university.

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

Bought to live in. Paid full market price.

How did you finance this deal?

FHA

How did you add value to the deal?

After we moved out, we updated one bathroom and redid the floors.

What was the outcome?

Tenants pay for our house every month with a decent amount left over for profit.

Lessons learned? Challenges?

Don't pay full market price. Location can right a lot of wrongs.

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

The property is currently being managed by Kathy Schade. She actually managed the renovations after we moved out even prior to the property being rented out because I work full time and go to school at night. That flexibility allowed us to make it happen in a timely manner.