Newbie Nuisance to New Buyer

Newbie Nuisance

In senior year of high school, I was working as a student aid for the library to get out of taking a class. One day I had an epiphany; anything I could ever want to, or need to learn, I could do so through books. 

My family background is nothing snazzy, my mother had me when she was 18. The highest schooling by parents each accomplished was high school. I was never taught self-development let alone personal finances. What I was taught throughout my childhood and growing up was what I did NOT want to have happen in my life. My father was very illiterate when it came to finances, leading to a file for bankruptcy. My mother on the other hand understood finances but did not go the length to become self-dependent when it came to finances.

I somehow knew that I would be the change in my families history and begin a new branch of knowledge and potential for my family. My younger siblings' future depended on it.

I'm not too sure when the concept of home ownership really set in, but I had always had the idea of purchasing my car and home with straight cash.. needless to say this didn't happen. 

I eventually began to have the urge to look into real estate, after looking into how much getting a Realtor license was and having more of a feel for the possibilities regarding investing. It wasn't until October 2019 that I stumbles upon a BiggerPockets podcast on Youtube, episode #353, Turning 5K into 5K/Mo Passive Income and Retiring at 40. I consistently listed from then on, being 6 months in April. After a few hints to buy The House Hacking Strategy: How to Use Your Home to Achieve Financial Freedom by Craig Curelop and Brandon Turner, I ordered it on June 2, 2019. I finally cracked the book open on January 14, 2020 and completed it April 2, 2020. I am now currently a week out from closing on my first house hack.

New Buyer

December 17, 2019 was my first time ever doing a walk-through of a property. Between that date and today I probably walked through a dozen or so homes to get the feel for what houses were like in my area and what exactly I was looking for. I knew that I wanted a home with at least three bedrooms, but hoped for a four or more bedroom property. Not knowing what I was doing I had already gotten a pre-approval, although I was no where near ready to make the jump, this gave me a cap of $100,000.

After listening to multiple BiggerPockets podcasts and learning, I learned what niche I wanted to begin with. My three criteria I wrote down were prospective tenants being students attending the local college Washburn University, the property being walking and/or biking distance from the university, and a three bedroom with the possibility of more rooms to be added.

Around March, 2020, I had set a goal: Have a house ready to rent by room by August 2020. Rent three rooms to individuals while living in a room. Utilize this form of real estate investing to become financially free. Additionally I wrote, "My why for wanting to become financially free: To show my siblings what is possible. By parents both struggled financially all my life and I want to help change the course for future generations in my family. To be able to spend my time helping others through non-profits and volunteering. I would also like plenty of time to be involved in school, research, business, and traveling."

On April 20, 2020 a property about a block away came on the market. This property is a ranch with three bedrooms, two living areas, one restroom, a garage, an additional add-on room, and a decent sized lot. Meeting all of my criteria, I immediately sent the property to my agent requesting to set up a viewing. By the next day, April 21, 2020, there had already been almost a hundred saves on the home and I had a viewing set for 4:30pm that evening. Immediately after the walkthrough, understanding the location, and potential of the property, I asked my agent to make an offer. Within 24 hours of the listing I was under contract with my first rental property.

After completing the home inspection and gathering all documents and information, we were able to negotiate the price below asking in an a market that has been on fire lately. I am currently set to close next week, May 28, 2020. I plan to make one of the living areas into another room and also add a restroom to the extended kitchen. This will complete all my criteria and allow me potential for maximum cash flow once the renovations are complete. 

With taking such a huge step in life, and my professional career, I do not feel the least bit anxious. I feel as though all of this has been happening for a reason and I cannot wait for the lessons and growth this opportunity has to offer me.