How did you buy YOUR OWN residence

Question

What's your own primary residence story? How did you acquire it?
Did you buy it after you zoned on an investor-friendly area, or did you find a place you want to live first and then started investing in your backyard?
Have you lived there for a while, and if so have you been tempted to refinance and take out a mortgage on it to have more capital for you business?
Maybe it was a flip that you kept for yourself? If so, did you allow your business to make your usual required ROI, or did you give yourself a break?
Perhaps you're still renting, how so?

To speak for myself, I bought my current house about a year and a half ago as a major renovation - the idea being that no project is large enough, as long as the price is right. In retrospect, I bought at the very bottom of the market in my area, and even though I thought about taking out a HELOC on it, i don't anymore. In addition to forced appreciation of a renovation, the area where i live has gentrified so much that i feel it's time to sell hight and move on - but i do want to wait for a two year mark to take advantage of a long-term capital gains exemption.

What about you? Share your story.

Ryan M. · Answer

200k jump in 3 years? I recall saying stuff like this 9 years ago but ate my words, haha Then a wise man told me not to count my chickens.....

Elizabeth Colegrove · Answer

My husband is in the military so every house is bought as an investment because shortly it will be a rental ;) we used the va loan for our current two personal properties. We will probably use conventional with as little down asdeposits allowed for our future personal properties as long as they rent.

George C. · Answer

My current home is the last spec house that I built in 2009 and couldn't sell. I knew that there was a chance that I could get stuck with this house long before we put a shovel in the ground, so instead of building the usual builder 2400 sq ft bi-level or small colonial, we went BIG, a 4800 sq ft Colonial in the Greek revival theme, it's on two acres. We figured that if we end up getting stuck somewhere for a while, why not be comfortable? Friends & family call it the white house. Being that I built it, there is plenty of equity, so I have a heloc on it that to used to buy some cheap foreclosures ( long terms rentals). I made our old home another rental after we couldn't sell it in 2009, 2009 was such a bad year for selling, even financing... I'm glad that it didn't sell, got good tenants in there helping to feather my retirement nest. If you see me around, you'll find me wearing old sweat pants, an old t shirt, driving an old 1998 Dodge Caravan with a loud exhaust...That's how I roll :) I clearly don't fit in the neighborhood. I had a meeting for one of my kids clubs at our house back in May for a parade float, the other parents followed us home to see the float. I enjoyed watching their jaws drop as they pulled in through the pillared front entrance gate & the kids all piling out exclaiming that we live in a mansion! They don't realize that they paid more for their homes, half the size of mine than it cost me to build this one. I love that!

Mark Ferguson · Answer

The story of how I bought my dream house is over in the Real Estate market place. I just moved in last weekend. Fair market sale, but it is an awesome house. My previous house I bought at the trustee sale.

Mark Ferguson · Answer

I agree. No one can predict the market and what it will do. There are many factors at play and trying to bet on appreciation is how I see the most investors go broke.

Jean Bolger · Answer

I bought my first house as an owner-occupied duplex. I was self employed and had to get Mom & Dad on the loan to qualify, which was a little humiliating (I was over 30 fer chissake!). I wish I could say I was prescient, but probably I was just lucky; that house was in the right place at the right time. I sold it 12 years later (2010) for $200k more than I paid originally and bought a HUD foreclosure for cash. I love not having a mortgage much more than I loved living on the "hip" side of town!

Alex Baev · Answer

You're right, we only lock in a loss or profit when we sell... but, scary as it sounds, that's what's happened to my primary residence in LA right now - a place i bought 18months ago would sell for close to $200K over what i paid for it, and that's without all the rehab work i did to it to bring in into this century. Many unforeseen factors contributed to it, as the area is truly gentrifying - but $200K?! That freaks me out on one hand, but on the other makes me want to do something productive with that kind of luck of the draw. I don't like to bank on market appreciation, only forced appreciation

Michele Fischer · Answer

20 years ago, when I was first married, we lived in a horrible apartment well below our means. The savings and a well timed inheritance got us into our first house. Company relocations brought two moves and different houses (never better, just different cities, still live below means), and real estate investing came much later. We love our HELOC on our primary to get cash available fast to show proof of funds for deals.

Dawn Anastasi · Answer

I purchased my home in 2010 during the first-time homebuyer's tax credit time. I was able to use the $8,000 I got from the government in 2011 once I finally received it (plus interest!)

Tim G. · Answer

Purchased a fourplex with an FHA rehab loan in a low income rental area. Two months later purchased my dream house by the beach with a conventional investor rehab loan. Fixing it up moderately will rent out for a year then move into it. Chose this area because its blocks to the beach and about to be on fire. I will see a 200k jump in equity within the next three years.