Find My Perfect Home With A Realtor’s Help!
When I turned 23, I made a big decision: I wanted my own home! I started looking at lots of houses online, getting a feel for what I really liked. That’s when I decided to team up with a realtor who understood I meant business. I conveyed what I wanted and he helped me create a criteria that helped us focus on exactly what I was open to. We saved dozens of house by not bothering with things that were shiny but weren’t within our criteria. You must narrow down to save your time, energy, and money! A realtor can help you tailor your game plan to make sure you’re going to win on the deal. Together, we picked out about 20 houses, then narrowed our list to 10. When we visited them, I could quickly tell if a house wasn’t for me—sometimes without even stepping inside!
I took a break from my search for a year since nothing was within my criteria, but then I was back at it, more focused than ever. I found a place that wasn’t perfect but had solid bones. What does that mean? It was in a great area (schools, crime, appreciation, activities), had a great layout, had great amenities, not too outdated, and was at a good price for me. Thanks to my realtor’s smart advice, we made a strong offer and sealed the deal a few weeks later.
Financing With A Mortgage
At this point in life, I’ve never taken out a loan (other than my current vehicle) for something so expensive like a home! I knew I was fortunate to have access to my VA loan for zero down so this shouldn’t be hard…right?! It really wasn’t. I had clean credit, no debt, low expenses, annnnnnd almost nothing in savings. So, when it came to putting the Earnest Money Deposit (EMD) down with our offer, I had to find somewhere to get it. I was confused thinking I didn’t have to put anything down! The EMD is given back to me after we close. I pulled the little savings I had along with an incoming check and placed the EMD to secure the transaction moving forward with the seller. For my loan itself, I didn’t have to put anything down. All of my fees were rolled into the loan and my seller paid for my broker’s commissions along with closing costs! There are 0% down payment and down payment assistance programs that can help you get into a home. The biggest factor is can you afford the monthly payments? Don’t know? Use my free Mortgage Calculator tool to see what you can afford HERE!
House Hacking
I was making good money as an E6 in the military so I could handle the mortgage by myself but I did have an extra bedroom. So why not House Hack? I rented my extra room to a fellow service member for a few hundred bucks a month. That was great because it was helping with almost half of the mortgage! My second roommate was someone I also served with and knew personally. Without those two roommates, I wouldn’t have saved 35k in mortgage payments for sharing some space. If you’re going to househack & actively live there as well, make sure to do background checks, verify, employment, check previous rental history, and to thoughtfully consider rooming with friends because those intimate experiences living under one roof can break or strengthen bonds!
Renovations
For the first year or so I didn’t mess with much until I got back from my deployment. Then, I couldn’t stop thinking of value adds! I started with simple additions that I could do. I built a new closet system for the main bedroom, poured an epoxy floor in the garage, added some storage space in the garage, and installed a stainless steel deep sink in the garage. Using contractors, I had the backyard renovated with turf, pavers, and a new vinyl fence. That was about 20k total. Next, I had a qualified tech replace my tank water heater for a newer tankless one. Almost 2 years after buying, I decided to sell. I used the same realtor I purchased the home with since we worked really well. I spoke to him about getting the highest and best price possible. He advised that we should do some value adds but no more than what will get us a return. For example, you can renovate the entire electrical system and heating/cooling for tens of thousands. Will that increase the sell price dollar for dollar? Will a buyer really appreciate those additions? We want to make sure we’re getting at least what we put in dollar for dollar. Some renovations are not worth it and many lose millions every year due to not providing what is actually in demand. Now armed with my advisor (realtor), I hired another contractor to remove the popcorn ceilings,& install a modern guest bathroom shower glass door. We also installed a drop down ladder for attic access & finished the entire attic space which added another room plus a small loft. That was about 13k total for the additions. I found a cabinet maker to re-face & re-paint the outdated kitchen cabinets for about 7k. We didn’t upgrade the appliances nor do any work on the flooring (still good condition).
“It all started with just ONE property providing safety & wealth to get me hooked.”
For Sale
After our value adding renovations were completed and I was moved out, we put it on the market!
This was right before COVID broke out and things got dicey. I didn’t want to deal with renters at the time and wanted the cash for future business ventures. Looking back, I’d keep it as a long term rental. After we did about 40k of renovations I was able to list my home for over 100k of what I purchased it for just a couple years prior. What caused its value to increase? Market appreciation through time and forced appreciation through the calculated value adds I performed on the property. Every dollar invested doesn’t always equate to a dollar back, so it’s important to know what additions would increase the value of your home in your local market, community, subdivision, and home type. Time, budget, capabilities, and the home type are all considerations. A skilled realtor can tell you what’s currently valued & what isn’t in your market.
The Reward
Within the first week we had multiple offers. WIthin a few weeks we chose a buyer, went through the process smoothly, and walked away with over 90k wired into my account. Because I lived in the home for 2 of the last 5 years I got a major tax exemption on my profits! These profits can then be used to re-invest in more properties to continue making your money work for you. With profits from the first we keep the ball rolling as it grows bigger and bigger. You’ve got to continuously keep money working for you or it’ll lose its value sitting still. Find a method that works for you & stick to it! There are ALWAYS deals for those looking!