Updated almost 4 years ago on . Most recent reply
First Real Estate Purchase
Investment Info:
Townhouse buy & hold investment.
Purchase price: $248,000
Cash invested: $12,000
2 Bed 2.5 half bath 15 minutes outside Downtown Charlotte. Also is a Double Master.
What made you interested in investing in this type of deal?
Charlotte is currently the 5th highest growing city in America. With my current job I do not have plans to move anytime soon. This got me interested in House Hacking instead of paying ridiculous downtown rent.
How did you find this deal and how did you negotiate it?
I found this deal with my realtor. We were buying in a hot market so I had to check online about every 2 hours then immediately have my realtor set up a time to tour (that day!) After doing this about 10 times I was able to find a seller who was willing to let me (the person who showed up first) buy the property over a larger all cash offer. I owe it all to the seller as he talked with me and when he found out I was 25, and this would be my first property he wanted me to have it.
How did you finance this deal?
30 Year Mortgage loan at 3.25% - 12% down.
How did you add value to the deal?
Upped due diligence to $4000... Ridiculously high so the seller knew I was not joking around at all.
What was the outcome?
Perfect inspection, loan approved, and closed within 30 days.
Lessons learned? Challenges?
Had huge challenges with the HOA of the property. They would not reply to my lender. Ended up having to go to there office with lender twice to get all necessary documents. Upon moving in my fridge, garbage disposal, and AC all broke. Luckily I had extra cash and had them all fixed. Lesson learned... make sure you have some extra cash on hand WHEN something goes wrong.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I would recommend my realtor to any young professional in Charlotte. He owns multiple rental properties as well as being a realtor for 4 years here. Great connection to have.