Expensive First House. Buy or Not?

[Jonathan Bonin]

Hello!

I am looking at buying a house, and it is on the expensive side when I ran the numbers. Right now it is $300,000, 2 beds and 1 bath in Orem Utah. It is a little old, and some new floors and a window or two will have to be put in, so a little repair is needed. Without looking at the price, this is what I am looking for: a residential home that needs a little bit of work to apply the BRRRR method.

When I look at the house, down the road I can picture a small ADU in the back and a finished basement added on to the main house. This can add two or three more rooms, making the numbers look a lot better. So the question I have is: Should I buy this home with the potential that I see? I don't want this to be a purchase solely based on emotion (although I do think it is pretty cool), or bad numbers/estimates on my side.

Any tips and tricks would be greatly appreciated!

[Caleb Ryan]

I would be careful, especially if this is your first investment property. I would always purchase based on the numbers, and make sure you have multiple exit strategies in mind. Maybe look at purchasing as a primary residence with an FHA loan, and house hack if possible.