Buy a House/Condo When it Costs More to Rent

3 Replies

Investment Info:

Single-family residence buy & hold investment in Hayden.

Purchase price: $318,500
Cash invested: $10,000
Sale price: $355,000

Built in 2005 this 3 Bed/2 Bath house was 1,640sf. It had a 2 car garage, fenced in backyard, deck, back patio, and an open concept floor plan. The master suite was on the east side of the house separated from the 2 guest rooms and 1 guest bath by the kitchen, living, dinning, eat-in breakfast nook, and laundry off the garage. This home had perfect structure/bones and was located in an amazing neighborhood walking distance from downtown, brewery, 3 parks, and the schools.

What made you interested in investing in this type of deal?

Built in 2005, this was a move in ready 3 bed / 2 bath, ranch style home with a 2 car garage, fenced in back yard, large deck, and great front yard. Builder grade and perfect for a starter home, family, or retirement. The Master suite was on one side of the house separated by an open floor plan with the kitchen, living, dinning, eat in breakfast nook, and laundry off the garage. It was located in a safe neighborhood walking distance from down town, 3 parks, and school.

How did you find this deal and how did you negotiate it?

We found it via Realtor.com/App and used a real estate agent with inspectors to negotiate.

One thing to note: we used the same agent to sell that we did to buy. I would better vet the agent selling by home and make sire they understand my priorities and risk tolerance. I need more of an aggressive agent to balance my cautious number running / pragmatism.

How did you finance this deal?

3% down using a 1st time home buyers loan from a local bank.

How did you add value to the deal?

We added a wood burning fire stove (we got for free), poured a concrete patio off the back porch, freshened up the landscape, re-seeded the yard, and did a few other odds and ends with finishes.

It really didn't NEED anything though...

What was the outcome?

We were able to sell and make some $. Not much, but it was great to come out positive. We learned A LOT, and gained confidence to pursue our next deal in Birmingham, Alabama.

Lessons learned? Challenges?

1. Timing is everything: We listed the house FSBO the week COVID was announced.... not the best thing for rural Colorado home sales... We had great momentum going into the sale and it tanked with the COVID news
2. Don't get emotional: After stalling trying to sell the home we felt trapped and that we had to dump the house. This was a narrow mindset and we lost our leverage (an thousands of $) and settled for the 1 offer we had. We could have done more research and held on longer. We had options

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

- Doug Labor: Steamboat Sotheby's (great and super knowledgeable buyers agent)
- Land Title

Congratulations on the new home purchase, @Will Gaskill

It really is amazing how few agents are skilled at both sides of the real estate process, and that's a valuable thing to note!

What plans do you have next in your real estate journey?

Hi @Will Fraser , and thank you! 

We (my wife Gabbi and I) are focusing on building our Core 4, and networking with others in the industry.

In addition to that, we are establishing our property analyzation process. We will be defining our property criteria, and a how we can run the numbers. 

Our focus is small multi family (duplex, triplex, quadplex) in the South Birmingham area. We are saving up for another down payment, but we are not adverse to getting creative with financing (OPM) if we find the right deal. 

What plans do you have next in your real estate journey? Any way I can help? 

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