First Home Purchase - Primary Residence

[Anthony Chao]

Investment Info:

Single-family residence buy & hold investment in Union City.

Purchase price: $615,000
Cash invested: $45,000

My first purchase, a place to call home.

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

I bought this property because I wanted to diversify my portfolio, have a place to call my own, and get my foot into the Bay Area real estate market.

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

I found this home on Redfin. I initially offered $592,800, 5% below the $624,000 listing price. The seller rejected without countering. After speaking with my agent we settled on bidding $615,000. Seller accepted the offer (with a cap of $1500 in Section 1 damage payment) and we went under contract.

How did you finance this deal?

Conventional Financing - 5% Down

How did you add value to the deal?

I did not add value to this deal.

For my next purchase, I am interested in buying a cosmetic fixer upper with solid bones (foundation, roof, electrical, plumbing, HVAC) and rehabbing the property to add value.

Lessons learned? Challenges?

- Make sure you look at as many open houses as possible (Ideally 25+).
- As a first time home buyer, don't get swept up in the excitement of seeing a home you could see yourself living in. Take a week to cool off before moving forward. (Helps to be in a buyer's market for this practice)
- Understand the difference between a mortgage broker and a direct lender.
- Shop around for financing and compare loan estimates.
- You don't have to commit to a lender until you are at the signing table.