First primary residence turned into first rental

[Byron Hunter]

Investment Info:

Single-family residence buy & hold investment in Dallas.

Purchase price: $243,000
Cash invested: $13,000

4 bed 2.5 bath SF 2 story. This was our first property purchase and our primary residence for 1 year before we moved and turned it into a rental.

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

In the beginning, my wife would not let me invest in real estate until we moved out of our 1 bedroom apartment. So we bought this house with a 2 person income. We got pregnant, she became stay at home mom, so we moved/downsized, turning this into a rental.

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

Found a real estate agent on Biggerpockets. Offered the asking price of $257k. Appraisal came back at $243k. We adjusted our offer equal to appraisal and they accepted.

How did you finance this deal?

Primary residence first time home buyer 30 yr fixed conventional 5% down 4.1% APR

How did you add value to the deal?

Sellers needed out quick due to divorce. We offered very quick closing because of conventional lending and strong financial position.

What was the outcome?

1 year later, we moved, giving us our first rental, $400/mo in rent over mortgage. Tenants just renewed for a 12 month lease.

Lessons learned? Challenges?

We learned so much. But to keep this brief, I learned I had a passion for real estate, which has led me to quit my corporate 8-5 (... More like 7:00-6:30), and become a real estate agent.