Converted My Home into a Section 8 Rental—$1,125/Month in Pure Cash Flow!

[Wale Lawal]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $237,000
Cash invested: $11,850

Converted my primary residence to a Cash-Flowing Rental Property to a Section 8 Long-Term Tenant in a Class B neighborhood.
Purchase in Sept 2019
Purchase price: $237,000
Cash invested: $8,900
Converted the Game room and Office room to a standard bedroom to make it a 6-bedroom 3.5 bath which increased the monthly rent from $2,400 to $3,215. Whooping $815 more cash-flow

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

2019 Built in a Class B neighborhood of Houston. Renting to Section 8 Long-Term Tenant
Purchase Price = $237,000
Renovation Cost =$8,950
Appraised Value = $310,000
Monthly Rental To Section 8 Tenant = $3,215
Monthly Mortgage Payment = $1,890
Monthly Reserve for Maintenance and CapEx = $200
Monthly Cash-flow = $1,125
Another investment property was closed and added to my rental portfolio. Congratulations to myself on this one.
Unto the next one!

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

This was my prior primary residence

How did you finance this deal?

5% Downpayment on a Conventional Loan

How did you add value to the deal?

Converted the Game room and Office room to a standard bedroom to make it a 6-bedroom 3.5 bath which increased the monthly rent from $2,400 to $3,215. Whooping $815 more cash-flow

What was the outcome?

Rented at $3,215 to a Section 8 Long-Term Tenant instead of a Long-Term Market Tenants for $2,400.

Lessons learned? Challenges?

Delay gratification is powerful and it's important to start your real estate investing journey early in order to reap the long-term benefits of real estate.

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

Yes, I represented myself. I am a Real Estate Broker myself who has helped over 400 other investors.