Updated about 2 hours ago on . Most recent reply
Primary residence turned into a rental
Investment Info:
Single-family residence other investment.
Purchase price: $329,000
Cash invested: $10,000
Sale price: $380,000
Purchased with a VA load as my primary residence. I moved in 2023 and leased the house to a construction company out of Oklahoma City housing workers while they worked on a road between 2023 and 2024. Sold in 2025.
What made you interested in investing in this type of deal?
I was just getting started in REI at the time. It was purchased as a primary residence with the intention of renting after PCSing to another duty station.
How did you find this deal and how did you negotiate it?
I found it on market at full price. The market was vicious around that time and houses were selling for over asking. I had been beaten out on several offers on different houses around town. I'll admit I was getting frustrated and running out of time to find a place for my family. I had to offer 10k over asking and barely met the appraisal amount.
How did you finance this deal?
Simple, VA loan. 0 down, 3.625% interest rate.
How did you add value to the deal?
I leased the house to a construction company and negotiated price reductions on rent and furnishings for small improvements to the property.
What was the outcome?
I didn't make much after closing, but my network had fallen apart by the time the lease was up and I didn't feel like holding it.
Lessons learned? Challenges?
My top three:
1. Always have a good support network for investments out of your local area.
2. I learned how to structure a corporate lease and barter for labor
3. If your realtor isn't doing their job, move on at the first opportunity to do so, don't wait.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not in this one. Unfortunately, I only worked with a realtor, and I should have moved to another one when she was missing basic tasks like checking on the property while listed, making sure the cleaners actually cleaned, put the smoke detectors back up before the VA inspection (removed by cleaners), etc.