Updated almost 3 years ago on . Most recent reply
Tiny House Living for Cheaper Than Rent
Investment Info:
Single-family residence buy & hold investment in Minneapolis.
Purchase price: $114,000
Cash invested: $22,800
As a first time homebuyer in 2009, we bought far less than the loan amount we were approved for, and got a great deal because we were willing to put up with small inconveniences. The house is 800 square feet and has no garage, little storage, no dishwasher, and is on a busier street. Loved living there for 10 years until our family grew and decided to rent it out.
What made you interested in investing in this type of deal?
Realizing we could own for less than rent. Wanting to maintain a minimalist lifestyle with a smaller space in order to maximize our savings to achieve financial independence.
How did you find this deal and how did you negotiate it?
The house was listed on MLS and we made sure to see it immediately and offer over asking. Even offering a significant % over asking, it was an amazing deal. This is where a great agent who understands your goals comes in - someone who knows the local market really well, has a sense of urgency, and will help you see things from various financial perspectives.
How did you finance this deal?
Conventional loan with 20% down. Wanted to avoid paying PMI.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I grew up in the Twin Cities suburbs and have lived in Minneapolis for nearly 20 years.