2023 New Home Purchase

[Kayla Heine]

Investment Info:

Condo buy & hold investment.

Purchase price: $242,500
Cash invested: $12,000

New 2022 build condo, 2 bed 1.5 bath 855sq ft. $20 monthly HOA, my interest rate is 5.9% which isn't bad compared to the time I'm writing this (June 14 2023)
Purchased home in 2023! We temporarily moved in and plan to move out next year and purchase another primary. My plan for this home is to turn it into a medium term rental so we're leaving all the furniture and supplies behind! If that doesn't work, I can do a long term rental, or rent by the room. I made sure I had options.

What made you interested in investing in this type of deal?

Buy and Hold has been the easiest and most simple way to invest, when I saw these brand new condos up for sale and the time they spent of the market, I had to dive deeper and get all the details. New homes have the most profit potential

How did you find this deal and how did you negotiate it?

MLS and my rockstar agent negotiated a brand new fridge and brand new stackable washer and dryer tied in with the loan, it was a great deal and less hassle for me to spend time buying new appliances out of my pocket, OPM for the win!

How did you finance this deal?

5% down conventional loan through the suggested lender the builder was working with

How did you add value to the deal?

Adding appliances and now I let time do its thing!

What was the outcome?

Move in

Lessons learned? Challenges?

I learned that I need to take more time when deciding to purchase a property, the first condo I attempted to purchase I decided I didn't want it, after earnest money ($5,000) and appraisal money paid. Long story short I wasted $800 for an appraisal and inspection fee wasted, my agent made a mistake and lost my earnest money, but with her being a rockstar agent she forfeited her commission and communicated with the lender of the new condo and basically kept me from giving up another $5,000!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Absolutely! I will always work with Michelle when I'm buying in Oregon.
My two lenders that I have worked with in the past Micheal King and Josh Hitsman are always my go to

[Andrew Freed]

@Kayla Heine - Congrats, sounds like a great deal! I do want to mention that losing soft costs such as inspection or appraisal costs when acquiring is just the cost of doing business. Not all houses pass inspection, not all houses are appraised at the value you buy it at. Hence, there are simply some deals you have to walk away from. I wouldn't think of it as a loss but a lesson learned for future deals. 

Regarding losing earnest money, yeah that shouldn't happen if you're agent is on top of their stuff. That is why you have contingencies in place.