The unconventional entry - Getting Started with 3 Kids!

[Chris Gillins]

So I thought I would jump back into posting since I have been doing lots of reading, and listening to all the podcasts. Great work Josh & Brandon, keep it up!

So our situation is this; we currently rent a 2/2 apartment, been saving for over a year, and have been looking to purchase our first property. With 3 kids we need more space than what we currently have, and quickly discovered that having a yard is a definite must have. After looking for a duplex in Vancouver, WA (the original) that has 3 beds and a yard, we realized that even the distressed properties were out of our price range, with the market heating up. So we looked into buying a re-habber, but there was a lot of competition, and we just couldn't connect on a deal after multiple offers made. 

Undaunted we did not settle into paying more than what we wanted or knew a house was worth, and kept looking for that ideal first home; a flip that had rental potential in the form of a detached building we could convert to a rental, an unfinished basement, etc. (I'll do all the work myself, as construction is my profession). We looked at 203K, HomePath, REO's you name it. Finally 2 weeks ago, we got back from a camping trip, checked Redfin, and there it was. The house we had previously put an offer on, was back on the market. It's a 4/2/2 with a separate detached shop that has a MIL suite over the shop, that just needs a little kitchenette to be rent ready. We offered right away, slightly above asking as it's a Fannie Mae and well below market value, and I know I can easily get the 1% rule or better renting out both units down the road. The other buyer tried to go USDA (not sure if they tried direct or guaranteed), but they ran out of extensions, so Fannie Mae put the house back on the market, and we had kept an eye on the house through Redfin.

Purchase Price = $177,000

Loan = FHA 203b = 3.5% Down

Low out of pocket entry into real estate investing with no outside (Bank of Mom) help, with plenty of equity and room for a family = Priceless

Hit me up if you want more details, I'll keep posting here as the process continues, our inspection is Thursday, fingers crossed nothing comes up!