1st home of many

[Michael Upson]

Investment Info:

Condo other investment in Worcester.

Purchase price: $350,000
Cash invested: $12,000

We recently purchased a townhouse with a grant that covered nearly $20k for downpayment and closing costs. One condition of this grant is that we cannot sell the property for five years, and if we refinance, we can’t take any cash out—it must be reinvested into the property. However, we do have the flexibility to rent it out.
Our goal is to refinance the property, as we initially purchased it with an interest-only mortgage, and get it rent-ready. Once we have it set for rental, we plan to

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

We needed to move quickly after our landlord gave us 60 days to vacate because he wanted to move back into his home. We had been planning to buy a house before COVID but missed the opportunity. This deal wasn’t about interest, but necessity, as my wife and I agreed we wouldn’t rent again. The grant covering closing costs made sense, but in hindsight, we likely wouldn’t have bought this particular home if we had more time to find the best investment.

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

I found this deal through networking while playing basketball. One of my friends is a mortgage broker, so I discussed my challenges with him, and he connected me with a real estate agent. We found the house through the MLS, and the negotiations took place between the real estate agent and the seller on my behalf.

How did you finance this deal?

7.375% Rate | Conventional | 30 Year Term