Home Turned Rental Property

[Marcus Alexander]

Investment Info:

Townhouse buy & hold investment in Tucker.

Purchase price: $155,000
Cash invested: $5,000

I'm renting out a home I purchased in 2018. God sent circumstances allowed my wife and I the opportunity and ability to rent out our home to a great tenant. We moved out, moved the tenant in, and lives with my inlaws until we purchased our current home.

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

I attended a real estate class a year or so into owning my home. The idea of buying a new home and renting our existing one was an idea that came out of that.

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

My next door neighbors' lease was approaching an end, and they constantly had issues with their existing landlord. The idea was presented that they move into our home and things escalated pleasantly from there. I took the monthly rent they were going to be paying if they renewed and averaged that with the going rate for a unit of my size.

How did you finance this deal?

I already had a mortgage on the home so there was no additional financing necessary. I did require a full month refundable deposit.

How did you add value to the deal?

I kept my home warranty active and did not add that cost into the rent.

Lessons learned? Challenges?

There are montly costs that needed to be accounted for outside of the mortgage and HOA fees. I did not consider that before executing the lease. I will build in funds for general maintenance and HOI on future rental agreements.

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

No