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My First Real Estate Deal Thread!
I followed a pretty classic path early on finishing college and moving to a new city to start a full-time job when I was 22
I had no savings and a salary of $40k/yr
I also knew I was interested in buying real estate...
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I followed a pretty classic path early on finishing college and moving to a new city to start a full-time job when I was 22
I had no savings and a salary of $40k/yr
I also knew I was interested in buying real estate...
I cut my costs like crazy from day 1 at the job
Partly because I didn& #39;t like the job at the time
I didn& #39;t want to be locked into this job without choices years later
Thank you past self... thank you so much!https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
I saved about $6k in the first 6 months
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Partly because I didn& #39;t like the job at the time
I didn& #39;t want to be locked into this job without choices years later
Thank you past self... thank you so much!
I saved about $6k in the first 6 months
At the time I was renting a one-bedroom apt that was walkable to work
I paid about $900 in rent, but no transportation costs
I realized really quickly my rent for this one-bedroom was actually more than paying a monthly mortgage for a nice house in my new city
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I paid about $900 in rent, but no transportation costs
I realized really quickly my rent for this one-bedroom was actually more than paying a monthly mortgage for a nice house in my new city
I wasn& #39;t quite comfortable taking on the full risk of buying a house in my first few months of full-time work and without much in savings
So I enlisted a friend who had similar interests but had not considered buying real estate
We also found another friend to rent from us
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So I enlisted a friend who had similar interests but had not considered buying real estate
We also found another friend to rent from us
We got a real estate agent through a referral that helped some, but had to remember that this was *our* process
No one would care more than us
We toured 15+ houses, single-family and multi-family
I even saw a dead bodyhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🧟♀️" title="Weiblicher Zombie" aria-label="Emoji: Weiblicher Zombie"> in one vacant house... (story for another day!!!)
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No one would care more than us
We toured 15+ houses, single-family and multi-family
I even saw a dead body
Before long we found a house that had been vacant 15 years, but had JUST been rehabbed
The previous owner got it at auction almost free and put $80k into the rehab
We offered $100k for this historic brick house that had just been seriously rehabbed...
And won the bid!https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏡" title="Haus mit Garten" aria-label="Emoji: Haus mit Garten">
The previous owner got it at auction almost free and put $80k into the rehab
We offered $100k for this historic brick house that had just been seriously rehabbed...
And won the bid!
" title="Before long we found a house that had been vacant 15 years, but had JUST been rehabbedThe previous owner got it at auction almost free and put $80k into the rehabWe offered $100k for this historic brick house that had just been seriously rehabbed...And won the bid! https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏡" title="Haus mit Garten" aria-label="Emoji: Haus mit Garten">" class="img-responsive" style="max-width:100%;"/>
Numbers:
Purchase Price - $100k
Down Payment - 5%
Out Of Pocket Cost Up-Front - About $7,000 ($3,500 for each of the two owners)
15 yr Monthly Mortgage Principal & Interest - $700
Monthly Rent - $500
Out Of Pocket Monthly - Around $900 ($200 for each owner after rent)
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Purchase Price - $100k
Down Payment - 5%
Out Of Pocket Cost Up-Front - About $7,000 ($3,500 for each of the two owners)
15 yr Monthly Mortgage Principal & Interest - $700
Monthly Rent - $500
Out Of Pocket Monthly - Around $900 ($200 for each owner after rent)
So I was now paying $200 a month at most and we were gaining equity in the home every month
Because it was a 15 yr mortgage we gained equity quickly, although I don& #39;t always recommend that choice
We lived there two years before all wanting to move for various reasons
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Because it was a 15 yr mortgage we gained equity quickly, although I don& #39;t always recommend that choice
We lived there two years before all wanting to move for various reasons
The home required very little work
I guess it was just that others were scared to live in a home that had been vacant for 15 years
We did some really basic repairs and worked on the deck and the yard a bit, and that was all
Then after two years we sold ithttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤝" title="Handschlag" aria-label="Emoji: Handschlag">
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I guess it was just that others were scared to live in a home that had been vacant for 15 years
We did some really basic repairs and worked on the deck and the yard a bit, and that was all
Then after two years we sold it
We listed the home for $150k and received 19 offers for at least $150k the first weekend!!! https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">
We accepted one that ultimately closed for $153,500 after some inspection and appraisal renegotiation
My business partner and I each received a check for $36,000https://abs.twimg.com/emoji/v2/... draggable="false" alt="💸" title="Geld mit Flügeln" aria-label="Emoji: Geld mit Flügeln">https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">
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We accepted one that ultimately closed for $153,500 after some inspection and appraisal renegotiation
My business partner and I each received a check for $36,000
Recap:
1. Lived in a nice house for two years
2. Paid about $200 per month
3. Gained equity every month
4. Saved $700 per month in cash flow EVERY MONTH (compared to $900 for rent for a so-so apt)
5. Did not rehab it
6. Got a $36,000 check for the "trouble"
Final thoughtshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
1. Lived in a nice house for two years
2. Paid about $200 per month
3. Gained equity every month
4. Saved $700 per month in cash flow EVERY MONTH (compared to $900 for rent for a so-so apt)
5. Did not rehab it
6. Got a $36,000 check for the "trouble"
Final thoughts
That additional cashflow and check at the end has been a CRITICAL part of launching my net worth growth in my early 20s https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
I love that I was able to hugely help my friend and partner also launch his financial growthhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete">
Above all...
My mindset reset forever towards owning assets
I love that I was able to hugely help my friend and partner also launch his financial growth
Above all...
My mindset reset forever towards owning assets
