First home turned into first rental

4 Replies

Investment Info:

Single-family residence buy & hold investment in Midland.

Purchase price: $189,000
Cash invested: $5,000

Wife and I lived here while I was in the oilfield. I was laid off and we moved to DFW.

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

No other choice, no equity at time of moving out

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

On market

How did you finance this deal?

Conventional owner-occupant loan

How did you add value to the deal?

Hold onto it

What was the outcome?

Cash flowing great

Lessons learned? Challenges?

Dealing with tenants and being open to providing value

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

Bought with an agent who did not provide much value. Lender was David Floyd of Mid America Mortgage in Addison, TX. He did a great job.

Updated about 1 year ago

Correction: cash invested is $5,000 in maintenance plus my initial $9,450 for down payment. So $14,500 total over the first five years.

@Joseph Firmin My apologies, I guess I started with the initial down payment of 5% conventional so $9,450 plus roughly $5,000 in maintenance the last 5 years. House is a 2008 build. So $14,500 total. I'll correct that.
Rental rates at purchase were $1800/mo when my note was $1350. Appreciation is also up to $240,000 without granite and newer flooring/appliances.

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