Turned My First Home into First Rental

2 Replies

Investment Info:

Single-family residence buy & hold investment in San Antonio.

I purchased my first home in 2011. In 2014, I moved into a larger house and decided it was an opportunity to add real estate to my investment portfolio. In addition, I wanted to use this as a learning opportunity as well - so I manage it myself.

What was the outcome?

It has been a great investment. Solid return and no major headaches. Great learning opportunity from documents & tenant screening, property maintenance, and most importantly tenant communication and overall management.

@Jose Salinas my wife and I bought our first home in 2015 in SA and are just looking at getting started with REI...and we're seriously considering this approach as an option.

I’d love to hear more details about your experience and how you made the transition.

@Jed Hefner  I think having previously lived in my rental has been very helpful in the process. First of all, it helped with getting to know the area and how I would market the property. For example, I saw in my neighborhood that there are a lot of rentals that are usually showing, so one year I decided to put up a lawn sign instead of just posting online. I got a great tenant that way - they were not happy with the condition of the other rentals. They saw the sign and called, I was there in 10 minutes to show it to them. They liked that my place was in great condition, which leads me to my other point. Having lived there for a few years, I kept up with maintenance, made sure it was damage free, and generally looked nice. It gave me an opportunity to explain to the tenant that I plan to keep the place in good condition and that I would require a tenant work with me in keeping it in good shape. I rented it for about 15% over market rent.  Since then I make sure to get tenants that are attracted to how well maintained it is, too the point that they are willing a pay a premium, I find that they are more likely to keep it in that same condition.  So far it hasn’t hurt me with excessive vacancy periods and I really don’t put much time and energy into maintenance since they are doing their part.  I don’t think I would have been able to figure out that marketing angle if I didn’t have the opportunity to live there to distinguish my house from the other rentals.  Maybe I have just been very lucky lol.

This is the one thing that popped into my head when you asked about my experience.  Message me if you have any questions.

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