All Forum Posts by: Caroline S.

Hi Everyone, about a month ago, i signed a purchase agreement with a builder for a house to be built and completed by Feb/March 2018. The house will be located in Fredericksburg VA. I put down $3000 when I signed. $3500 is due tomorrow, and another $3500 due in 1 month, which makes a total of $10,000 in earnest money. Here is my question: If I wanted to back out of this contract for whatever reason, what are my losses most likely be? Will I lose the 3000 or will they make me pay the entire 10,000 earnest money? or will they make me buy the house. The purchase agreement is vague and makes no mention of default, it only mentions the dates that each installment is due. I'm sure there are situations where people have gotten cold feet or have unforeseen circumstances, or whatever the case may be. My issue is the commute to work is going to be killer, an average of 1.5 to 2 hours each way from F'burg to Fairfax by car or train. Initially, I thought I'd sacrifice my time for greener spaces and larger spaces but now I'm thinking I may not be able to handle it. I'm seriously having doubts. I've heard of people backing out right before closing or durung inspection. So I am wondering if I have a better chance of backing out since it is way early in the process -- only 3000 of 10,000 has been paid, the contract has not yet been ratified, no pulling of building permits, and of course we are way ahead of breaking ground. Anyone have any ideas of the likely loss i would have to endure? i appreciate all input. Thank you.

congratulations @David Zheng ! you just re-lit the fire in me!Please continue to post as many of us look forward to learning from experiences such as yours, especially us noobs about to pull the trigger.

@Manolo D. sorry if the post seems weird, i cant seem to get it right via my phone. I may look into Maui props when I get back home... unless there's a way to do this with little to no $ down. Hard money? Private lender? I think that would work with Buy and Sell, but not buy amd hold? Sorry, im still learning and not too well versed on financing yet. In any case, Im still here in DC/Nova and would like to take some steps. Find props and make offers even if I dont have the financing layed out yet? That way Im forced to figure it out and make it work. lol, thats a great strategy.

HEY Loren, i may come home to Maui next year as my mom is getting older and I need to help care for her. If that happens, I will let u know. Congrats on a successful biz on Maui, the real estate is woah! I should know, all of our rentals increased and cash-flowing like crazy. Caroline

Hey everyone, so sorry for the late reply. I've been busy. Thank you all for the great advice. I am still trying to figure out what to do while Im in the DC/Northern VA. I am looking into a property here, but pricing is astronomical. I am definitely moving out of here ending of 2018 to my chosen househack market, but I am wanting to do something here now. And, do you think I have many options with these stats: -credit score 800+ -decent paying job, but minimal downpayment as I'm paying down a 30K personal loan. -extra income about 1750/month from rental props parents left me. thanks again all.

Thanks, Thomas! i agree with a multifamily househack. As I mentioned earlier, they are rare here. There are lots of SF with basements to rent out but it wouldn't cover my mortgage, not even close. I know that I can get a home and rent out rooms, but I really value my privacy. I'm kind of stuck. If anyone in Nova knows of a multifamily, I am interested. Thanks, C.

Hi BP Family, I originally started looking at out of state properties but have recently been looking in my area in DC/ Northern Virginia. At first I was not interested in looking in the Nova area because of the high prices -- it is darn expensive here, but I am trying to keep an open mind as an open mind is required on this real estate adventure. However, I am way too all-over the place right now. I've thought about a multifamily househack, but multifamilies are scarce in NOVA and I dont know why. So then this leaves me with expensive single families here. The astronomical prices are scary. Then I thought about acquiring a piece of land and building a multifamily on it, but I think this project level is not for beginners. sigh. Then back to out-of-state multis. Im going in circles. Lets move on. My credit score is 800+, I have a decent paying job with the gov, have extra income from rental properties my parents left me, but downpayment is limited as im paying off a 30K personal loan. What are the odds in getting financing for my first REI project/property? And knowing my financial stats, does it matter starting off in an expensive market like mine or should I look elsewhere, i.e. Columbus OH, Kansas City, etc. I sort of believe that it doesn't matter if one starts in an expensive market or not, what matters is that you know what you're doing. And to add to that, though I'm educating myself, I still dont know what I'm doing. I do, however, want to pull the trigger. I apologize for the long post. And thank you to everyone in advance. Caroline

Hi Eric, 

I'm in Alexandria. I've read a few of your posts and your blog. I'm also interested in your GC recommendation. Once I locate a piece of land, I plan on going with a multifamily modular and househack. I'm very new at this but thought I'd make connections now. Any info is greatly appreciated.

Caroline 

Originally posted by @Elizabeth Wilson:

@Caroline S. -  super exciting!!!  I would move to where I want to live. Living in a city you love is way more important.  There are deals in every city.

And I'd wait to house hack.  You could start now researching your dream city and networking with wholesalers there to find a deal.  It might take a year to find the right deal in the area of town you want.

If you end up deciding on Memphis, hit me up!

Best of luck!

Hi Elizabeth, thank you for your reply. Yes, househacking in a market where i could potentially "settle" in is definitely a huge factor. There may be children down the pipeline so a town that will be great for families with a strong economy is ideal. I've strongly considered Memphis. What are your thoughts now that everyone else has been  heavily advocating it. Is there room for for a small time investor? Will it still be poppin in yhe next 5 years? Thanks so much for your input.

Aloha everyone. Newbie here. I'm  looking to make my first purchase also. Not so sure which way to go, househack or turn-key. Next year in 2018 Ill be able to leave DC area and take my job with me where I can go househack somewhere in a great market. Where oh where should i go?Again,this isnt until next year. But-- I'm so jazzed about achieving financial freedom within 10 years that i dont want to wait.  So which market should i do turnkey for now?  I am very new so I pray my first experience is a good one. 

Also, If you were just starting out, and you had the opportunity to move to your house hack dream market, and take your current job with you which you will need to build downpayments while you HH, where would you go?

So far Ive looked at Kansas City, Memphis, Indianapolis, San Antonio, Clearwater. Ive looked everywherrre. I'd like to zero-in on an area or direction as I am all over the map. Theres so much to learn!  

Many thanks, Caroline