My first Single Family Deal

[Sachin Bhat]

Hello everyone, I wanted to get your perspective on the house that I am about to purchase. I am in escrow as I am writing this post. This is my second home that I am buying, first one being a condo. So this property is in California about 1:30 mins from LA. 

So the initial asking price for this house was $299,999

It is a 4+2 in a descent neighborhood, close to local college, bus stop and shopping

The house needs about 25K worth of updates. Roof needs to be fixed (estimate for the fist $1800 from sellers contractor)

  We went back and forth on several offers and after the inspection I made my final offer. which is Seller pays all closing costs and points $7550. And selling price would be 305K

I am getting a loan with 10% down and bought the rate down to 4% by paying 2 points (All comes from sellers and lenders credit. Nothing from my pocket)

I get 5K from Agent at closing to fix the roof, furnace etc

Appraisal came in at 315K.

My plan is to live in one bedroom and rent out others and I will get about 1800 in rent. Which covers my mortgage. 

I am putting 10% down and 25K (20K my own funds and 5 from agents credit) in to the property to update and fix bathrooms, flooring, painting, kitchen remodel etc. Assuming the property value will go up to market value which is (conservatively) 335K.

Did I make a good deal? I did my best to negotiate but I still wanted to hear from experienced investors on BP. Thank you.