C'ville SFH converted from primary residence to rental
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $160,000
Cash invested: $15,000
Primary residence (first home) turned into a rental rather than sold when I moved into/purchased a different home. Remodeled the kitchen, bath, and conditioned the attic to living space before moving out and renting. Purchased for 155K in 17' and appraised for 280K in 21'.
What made you interested in investing in this type of deal?
Always interested with real estate and took the opportunity to get a cashflowing rental when it was presented to me.
How did you find this deal and how did you negotiate it?
Found as a owner occupied first time home buyer.
How did you finance this deal?
Conventional 3% down with $5K sellers assist - owner occupied terms
How did you add value to the deal?
Remodeled the key areas inside (Kitchen, Bath, Addt. SF) with higher end finishes (Quartz tops, tile and hardwood flooring, stainless steel appliances)
What was the outcome?
Accidental landlord who got the real estate itch to grow a portfolio intentionally. After getting a tenant under contract I pulled money out via a cash out refi to acquire my next rental buy and hold deal.
Lessons learned? Challenges?
Took extra attention when writing my lease agreement and reviewing applications to find renters that behave like homeowners (require them to mow their own lawn to avoid lawn care expenses, all utilities except for sewer/trash are tenant responsibility) which has paid dividends in reducing headaches and keeping time spent on management to a minimum.