1st home is now a rental

[Jacob Evert]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $305,000
Cash invested: $160,000

First home purchase that I kept and turned into a rental after saving for a new primary residence. I've refinanced the property several times to take cash out for remodels of my homes I have lived in.

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

I knew owning rental property is a good wealth building strategy.

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

The house was owned by a family frined of my in-laws. We were able to negotiate the price off market.

How did you finance this deal?

I got a traditional 80% loan from Wells Fargo

How did you add value to the deal?

I totally renovated the kitchen, bathrooms, and finished the basement.

What was the outcome?

I've had the house fully rented from the beginning. I've always been able to find new tenants to move in within days of the previous tenant moving out.

Lessons learned? Challenges?

I have had several maintenance items come due in the last couple years. I wish I knew about this site before I pulled cash out. I didn't account for capEx or OpEx in my budget, so this deal doesn't cashflow right now. But I do have a lot of equity built up in the house.

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

Since this is a long distance rental now since my W2 job moved me to California, I have Windemere manage the property for me.