Updated over 2 years ago on . Most recent reply
Becoming Accidental Landlords
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $178,000
Cash invested: $35,000
The property that got us started... My wife and I purchased this property in 2020 to live in and decided to rent it out when we moved in 2023. It was such a great asset that we decided we needed more and are starting to build the portfolio!
What made you interested in investing in this type of deal?
The Covid appreciation of prices, rent, and interest made it a much better deal to hold & rent than to sell!
How did you find this deal and how did you negotiate it?
Standard first-time home buying experience to begin with. We did not know we would rent it out when we bought it. In fact, we bought it sight-unseen and was not even in the same state until 5 months later.
How did you finance this deal?
0% down 30-year VA loan at 3.5% fixed.
How did you add value to the deal?
We bought it knowing a few capital expenses were needed. While living there, we replaced the roof, added gutters, encapsulated the crawlspace, replaced the two HVAC units, and rebuilt the deck with Trex. In total, we spent around $35k over the three years we were there.
What was the outcome?
We eventually hired a property manager and rented it out to a coworker who lives there with her husband now.
Lessons learned? Challenges?
The water heater sprung a leak during the tenant's very first week, soaking everything in the garage and spraying her with water when she opened the door in the morning. Thankfully, there was no significant water damage and the unit was replaced the same day.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
TBD! This is only a few months old, so time will tell on the PM.