Finally acquired my first property.

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Probably a terrible time to buy a house but I just purchased my first home. It's a 3 story, 3 bed, 3 full bath townhouse in Vancouver WA. It is set up perfectly to rent out but I have to do some light work on it first, which I am looking forward to. After this I will either rent out some of the rooms or I will wait a few months and move out completely and give it over to a property manager. Minimum I can have it paying itself off with a tiny profit at first. It won't be hugely profitable at first but after PMI disappears and I refinance after a few years it will be pulling in a nice profit. Excited to start this journey.

Updated 3 months ago

UPDATE: I might lose this property. While trying to figure out what the HOA covers so I know kind of insurance I needed to pay for, I may have uncovered a blatant case of seller fraud. There is a huge pending lawsuit that will require a special assessment to be divided out to every homeowner in the community that would total about $40,000 each. I found this out completely on my own after five hours on the phone and interrogating about nine different people. The seller has a fiduciary responsibility to disclose this information and I found this out completely on my own three days before the closing date. Not a single person informed me of this and I didn't even know I needed to get loss assessment insurance. I would have paid asking for this property + closing costs and then had a 40k bill show up at my door a few months from now that my insurance would have paid for. Soooooo yea....real estate. Weeeeeeee.

Hey Reed, 

It sounds like you've got a great house hack or BRRR going. If you are going for the BRRR strategy, it's important to put the home into "service" (meaning advertising it for rent) prior to doing your renovations. Otherwise, you can run into tax issues regarding your renovation. If you don't put it into service, then any repairs that you make will be capitalized instead of being expensed which creates depreciation recapture tax as opposed to expenses that reduce taxable income.


Cheers!

UPDATE: I might lose this property. While trying to figure out what the HOA covers so I know kind of insurance I needed to pay for, I may have uncovered a blatant case of seller fraud.

FURTHER UPDATE: The seller has decided they are entitled to my earnest money for catching them lying and backing out of the transaction. Lawyers are involved now and I will likely end up going to court. The brokers said this is one of the worst first time home buying experiences they have ever seen....awesome.

FURTHER FURTHER UPDATE: @Julian Delgado for legal purposes I shouldn't disclose any further information on this until things are settled. In a nutshell, things have gotten even more ********ty'er. I'll update this thread with a more comprehensive update as soon as I am able. 

FINAL UPDATE: The seller tried to sue me for my earnest money. After they realized I was fully prepared to take them to court they backed down last second and I ended up getting my earnest money back. I still lost the $1200 for the appraisal and the inspection but the real estate company I was going through (CANO) paid for my lawyer because they realized they royally messed up and failed to catch this lawsuit as well so at least I didn't have to pay for any legal services. The Principal Real Estate Agent apologized and said this was one of the worst first time home buying experiences he had ever seen. So all-in-all the nightmare is over. Lost 2.5 months of my life but it could have been a lot worse had I bought this property and that special assessment landed in my lap. Real Estate....not so much fun thus far.....

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