Primary House/Home single family residence purchase
Investment Info:
Single-family residence buy & hold investment in Aloha.
Purchase price: $365,000
Cash invested: $73,000
This is my home residence.
What made you interested in investing in this type of deal?
I wanted to have a house for my home and for my family. I wanted to gain appreciation and equity in the house instead of renting.
How did you find this deal and how did you negotiate it?
Realtor. Negotiated using a realtor. Unfortunately, Portland Metro real estate market was an inflated market at the time of purchase in 2018. I know the macro economic conditions in the metro area, and I anticipate continued appreciation in the real estate market even if it is not accelerated as it has been in the last five years.
How did you finance this deal?
Most of the money saved up from equity from a sale of my previous house and the rest I obtained from a family private loan to bridge the remaining $13,000 gap. I used a 24-month business income loan, which was at a higher interest rate so I could get into the property. I am currently in the process of refinancing that loan to a 3.5 to 3.75% loan, which will shave 2.5 to 3% off my interest rate.
How did you add value to the deal?
I was looking at market rates. I was looking for a good home to live in for my family, in a safe and quite neighborhood, with large lot size and as good as location I could find in an inflated market. This house is in good shape with a mixed bag of items I need to fix and some cosmetic items I can do to increase value. This was not a flipper. This was a house to live in to get out of paying rent to a landlord and get growing appreciation and equity in an asset.
What was the outcome?
The outcome was I have a house and my money is going into an appreciating asset.
Lessons learned? Challenges?
I learned about bidding wars as offers were coming in above asking price all over the market. It took 4 solid months of looking every single weekend and on days and evenings sporadically to finally find a house that fit most of my criteria. My realtor was highly responsive and knowledgeable and I was motivated. Even then it was challenge in the Portland Metro's inflated real estate market in 2018 with a low amount of inventory on the market.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with a realtor I would recommend to others.