Purchase Date: 9/02
The Deal:
This property was listed for $80,000, originally this house was our backup, but due to our realtor not being on the ball, we missed out on the house we really wanted. We negotiated pretty hard on this one but the owners wouldn’t budge and we were facing a time crunch to get out of our apartment. Eventually, we settled at $79,900 and they paid closing costs and gave us some other buyer credits. This was our first purchase, we had no idea what we were doing, probably paid too much, and didn’t really end up where we wanted. However, we loved the house, and long term it has still managed to become a profitable rental for us.
How Did We Find The Property?
We found this property through the MLS and with the help of our local realtor.
How Did We Fund The Property?
We used the first-time homebuyer 3% down FHA loan on this property. Back then we got a good rate of 6.625%. After owning the property for a little over 10 years we refinanced the property to a 4.5% loan that reduced our payment by over $150 a month and that made our rental much more profitable.
How Did We Fix The Property?
This property had been recently renovated. The seller was focusing on selling this property to an owner occupant and making the property move-in ready. While we lived in the property we did add a dishwasher and central air to the house, as well as install some new carpet and paint, but these moves were all done as owners living in the property, and not as a value add opportunity. Once we moved out of the property, the property management company painted a room and maybe a wall, but we really didn’t do many renovations to the property.