My wife and I have now owned our current home for 15 months and I thought I'd do a deal recap.
We purchased our current home (single family home with a mother-in-law suite in the basement) in March of 2020. This was a very nerve-wracking time being that the market was very unsure of the future and rates went up and down like a boat at sea in a storm (my loan office jokes with me to write "Bought a home when Covid hit" on my resumé).
Jokes aside, my wife and I were scared that we were buying a home at the worst time since no one seemed to be in the market to purchase a home. We were due for our first child in June and figured we might as well just complete the purchase since we needed a larger space (we were renting a 600 SQ ft basement suite from our friends mom and dad) and we figured the rental in this future home would help hedge any risk with making payments in the future.
The property was listed for $275k, we offered $280k and asked for new electrical panel and all closing costs to be covered by the sellers after inspection. Our realtor was so helpful with this deal - since hardly anyone was in the market we had a lot of leverage and we simply set a deadline for when our offer would stand and if they didn't take it we were out (they were getting minimal offers at the time).
They accepted our offer and we closed May 7th of 2020. We put 3% down and we've renovated the home quite a bit..
-opened up the floor plan by removing a few non-load bearing walls
-painted entire home
-new can lights
-new appliances for renters downstairs
-scraped popcorn ceilings
-new LVP flooring up and down stairs
-new base and door casing
-few exterior adjustments like small decks and cleaning up yard
-added accents like shiplap wall and white-washed brick fireplace
The basement rents at $850 /month and we rent a room upstairs to a friend for $300 /month. Our mortgage payment is $1628 /month which results in a very affordable payment to own a 2000 sqft home with 2.34 acres of land and a few outbuildings on the property to do shop activities. We love it here!
Current home value according to our realtor is somewhere from $375-385k which is phenomenal - we are truly blessed and what seemed to be a risky move when we were purchasing the home has seemed to really pay off.
I'd love to pick up more rentals and/or flip some homes in Minneapolis area - if anyone is looking to partner send me a message and let's connect! I have been immersed in the real estate game for 3 years now and loving every step from learning, deal searching, and executing on a deal!!
Best,
Brent
