First Investment Property in the Greater Sacramento Area

[Tammy Kerns]

Investment Info:

Single-family residence buy & hold investment.

This was my primary residence that we converted to our first investment property. The purchase price in 2009 was $175k, current value is $375k. Rented since 2017 and self-managing this property. Currently, cash flows $200/mo on a 15yr loan.

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

Because we bought low in 2009, and had a 15 yr loan, the numbers made a lot of sense. We were needing to move due to job changes and renting it out was the obvious choice.

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

We cheated on this one, lol. This was our primary home, that had recently been refinanced to a 15 yr loan because we could afford it. Shortly after we needed to move and going rates for rentals were still a decent amount more than our mortgage, not to mention the appreciation. Now that I am a bit more serious about REI, I am working on refinancing the loan back to a 30yr for more cash flow and the ability to leverage some of the equity for my next deal.

How did you finance this deal?

First time home buyers program

What was the outcome?

Currently rented to the original renters (3yrs now)