Primary home for 7 years converted into a rental.

[Angelo Aguirre]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $20,000

This was our primary home for 7 years. We just closed on a new primary (June 2020) home and converted this into a rental. We're excited to be able to have held onto this property. Great East Side location and close to interstate, malls, and grocery, all within 2 miles of this home.

[Angelo Aguirre]

@Sam Lewis thank you! I did not have any worries about renting out our old primary home for a couple reasons. We were able to leverage this home to purchase the other two investment properties via a HELOC. We were then able to refinance, paying the HELOC off, and the rent:mortgage is at the 1% rule. Our refinance is at 75% LTV, so the Bank was happy to refinance it. It works even better because since it was a primary, we were able to get a 30 yr mortgage, resulting in better cash flow. Also, since we know everything about the house we are able to better gauge for expenses and foresee what might come up during the rental period. This house is in our area so I liked that it was closer than the other properties. Also, this area appreciates better than our other properties so I feel like we are taking advantage of all 4 area of RE we love: Cash Flow, Appreciation, Debt Pay-down, and Tax Benefits.

Thank you for checking it out!