All Forum Posts by: Clarissa Ferrell

@Chris Seveney Thank you for your insight. You're correct, the best interest of my children should be a priority over potential investment opportunity. As much as I love them, I have to admit, my kids are loud and rambunctious. Having a safe (free from traffic) space to roam is a great perk of House 1. 

Hello, We are going to be moving to a new subdivision, new construction home. We are uncertain as to choose a less expensive home with more exit strategies, or a lot that is perfect for our family. The floor plans would be the exact same, just the lot and ability to add options would vary. This is what I mean:

House 1: 0.57acre, mostly level lot (very uncommon in my area), no neighbor to left (land is unbuildable), no home directly across, end of cul-de-sac, lake view, backs up to nature preserve, holding pond borders lot, utility easement (grass, not a dirt road) across the front and along side of property, limited to 2 car garage and driveway, sunken basement (no walkout option), plumbing rough-ins in basement. Additional note: all the homes on the opposite side of the street are $1M+, while our's is $580K.

House 2: 0.15acre, steep lot, neighbors on both side, middle of street, backs up to limited woods and highway below, no nearby common area for kids to play (would have to play in road), no water feature, 3 car garage, walkout basement, can finish basement with bedroom, bath, and mini kitchen and the total cost of home would be $40K less than House 1. The additional parking, separate entrance, and finished basement would allow us to rent out the space without sharing our living area with the lessee (If we ever needed/desired to rent out that basement in the future).

What would a seasoned real estate investor do in this situation? We do plan on keeping the townhome that we currently live in as a rental. However, per our HOA covenants, the minimum lease term is 360 days (yes, 360, not 365), so long term rental it is.

Any advice is appreciated. 

Thank you,

Clarissa

Investment Info:

Townhouse buy & hold investment in Boron.

We own a townhouse as our primary residence. However, with three children and a dog, we've found ourselves outgrowing this place. We plan to keep it as a rental. We will document our journey of doing the glamorous and not so glamorous renovations to prepare this home for investment status.

03/2023 Heat pump went out. We've been relying on space heaters for the last couple of weeks (not excited to get my electric bill). Getting the heat pump and air handler replaced next week.

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

Initially, this home was just going to be a primary residence, we weren't thinking of owning an investment property when we purchased it. With winter quickly approaching, we were on a time crunch to cut down my husband's work commute. This was the least expensive home we found in the area we needed to be in. Since we've moved here, a coffee shop and other stores have opened within walking distance. All around, it's a great family neighborhood.

How did you add value to the deal?

Installed granite countertops, replaced all carpet with LVP flooring, and updated/corrected the not so glamorous stuff (replaced back patio that was not graded properly, corrected plumbing issues, currently replacing HVAC system, plan to replace failing deck).