The Truth About Real Estate Investing...Part III
…It’s not as easy as the Gurus make it out to be.
Part III: The Second House
At this point, I’m living in my first home, and my roommate is paying most of my mortgage. I’m living the high-life. Each day I come home from work feeling awesome about being a homeowner, and wondering how to make the next step toward financial freedom.
As I drive home from work one day, I decide to take a spin through the neighborhood when I notice they’re building a new subdivision behind my current one. It’s a mostly empty area with new roads and a couple of completed units in addition to the model home at the entrance.
I decided to stop in and check out the model home to see what they were offering. I’m so glad I did. I looked over the neighborhood plans, checked out the various floor plans available, and talked with the on-site agent for a while.
After spending about an hour there, I had picked out a future house nestled in the outside corner of a bend in the road that was backed by wetlands. Benefit…no rear neighbors. It had a lot premium due to its location, and it was a two-story 3 bed, 2.5 bath home with a single car garage. I picked out some upgrades like stainless appliances and Berber carpet. I added in wiring for surround sound and a garage door opener. All things I didn’t realize at the time I could have done afterward for less, but I was on a roll.
I got pre-qualified through the builder’s preferred lender, which got me 3% toward closing costs. Just so happens their preferred lender was the lender I used on the first house. I signed the contract and called my agent who promptly let me know I should have called her first (lessons learned the hard way).
I got to see the house go from foundation to finished product, which is something most homeowners don’t get to experience. All of this before ever closing on the house.
Between contract signing and closing I’d re-enlisted for another 6 years. I had some bonus money in the bank for the down payment. I didn’t realize at the time that I could have gotten a second VA loan, and not had to bring money to the table.
The house was complete, and closing day finally arrived. Walked away from the table with $7K out of pocket, and keys to house #2. Then I commenced moving in with my roommate in tow. Now it’s time to start the journey of renting out my first house.
Let’s do this!
Come back later for Part IV.
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