Purchased my home with a rental income guest house

[Dawn Peterson]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in West Hills.

Purchase price: $329,000
Cash invested: $65,000

Primary residence with guest house rental income that pays my mortgage taxes and insurance.

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

Does it make sense to buy a home without rental income potential? No

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

Realtor. I did not know anything about anything. I trusted my agent and demanded a instantly rentable rental home on the property in a good area.

How did you finance this deal?

Sold my previous home. My mom gave me the 30k down for my first home in North Hollywood 2 years prior.

How did you add value to the deal?

Not sure.

What was the outcome?

Still paying PITI with the guest house income.

Lessons learned? Challenges?

Be clear with renters on the fact that they are renters, not friends. Current tenant is a chain smoker so down the road, new drywall?