First home to first rental

[Andrew R.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $83,000
Cash invested: $1
Sale price: $85,000

Property was my wife and I's first house we lived in. We purchased this 1 year after we married and rent it to family.

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

I realized the power of home appreciation.

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

This was a few years back so home prices in the Dallas TX area was much lower and easier to negotiate. This was a power of attorney since the owner died and the adult children wanted to get sell the property.

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

Since we lived it in we rehab per our taste and then rented it out.

What was the outcome?

This was a real life example for me how passive income worked. As soon as we moved to another property we had renters.

Lessons learned? Challenges?

Not sure if this is a lesson. We rent this to family and have not gone up on rent for quite some time and don't plan too. The only reason we would is if taxes were to go up. However all expenses including upgrades, appliances and maintenance are covered by the tenants.