Updated over 5 years ago on . Most recent reply
First home turned into rental.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $415,000
Cash invested: $20,000
I bought and moved into this house in 2017. In 2020, I turned this property into a rental, and moved my family into a smaller rental. While the cash flow on the property only $200. By moving into the smaller rental, I am paying 600 less per month in living expenses.
What made you interested in investing in this type of deal?
My family was growing. The price to rent a place that would accommodate our needs was begging exceed the price to own a home in our area.
How did you find this deal and how did you negotiate it?
We used a real estate agent.
How did you finance this deal?
conventional loan.
What was the outcome?
We found the school district to be unsatisfactory as our kids got older. So, we downsized and moved into a smaller rental in a better school district. Then rented out the house, the tenant pays all utilities. The house brings in about $200 in cash flow, but due to downsizing to the smaller house, we are saving an additional $700 in living expenses.
Lessons learned? Challenges?
We learned to do better due diligence when it comes to school districts. Also, We really feel that had we went with a different agent, we could have gotten a better deal on the house. So we will be more mindful of this in the future.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Key Financial Services Mortgage broker in Pasadena, Ca