Author Topic: What Made You Purchase Your First Property?  (Read 581 times)

RidetheRain

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What Made You Purchase Your First Property?
« on: October 09, 2017, 09:52:09 AM »
Everyone has opinions on how/when to purchase your first property. I'm guessing most people purchased a primary residence first, but you never know! Some people say only purchase a house after marriage and others say when they had the cash and saw something profitable and just went for it!

I thought it would be interesting to see what made people here take the leap into real estate - for rental or personal use. Was there a beautiful house for the cheap or did you have a kid and decide it was time to settle down, or - as this article says - are you a millennial with a dog?
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clarkfan1979

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Re: What Made You Purchase Your First Property?
« Reply #1 on: October 13, 2017, 03:12:04 PM »
The layout was perfect.

I ignored that there was 10K of cosmetic repair needed.

ketchup

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Re: What Made You Purchase Your First Property?
« Reply #2 on: October 13, 2017, 03:27:19 PM »
I wanted to move out of my parents' house, and my girlfriend wanted to move across the country.  Girlfriend also wanted to bring along girlfriend's sister and girlfriend's sister's boyfriend.

I found the cheapest house within 10 miles of my parents' house (I don't recommend this strategy) and it seemed good enough.  500 square foot 1 bedroom 1 bathroom house for $18k at the bottom of the market in 2012.  Viewed the house with the listing agent, plunked down $3500 down (brought in literal cash to the closing because I was an idiot) and paid the rest over five years to the seller (owner financing).  I was 20 (GF was 19).  The four of us lived there for just over a year, and good times were had by all as we figured life out.  Now a rental and paid off.

Second house is more of the "millennial with a dog" situation.  3bed/1bath ~900 square foot house for just GF and I, along with our dogs.  We were 24/23 at this point.

The first house was lucky since I had no idea what the hell I was doing.  For the second, I knew what I was doing, and did the whole "normal" realtor/30yr mortgage route.

Rcc

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Re: What Made You Purchase Your First Property?
« Reply #3 on: October 15, 2017, 06:54:08 AM »
Factors on choosing our first and current home:

1. Sale price was 2.13x my salary at the time. Banks were trying to get me into mortgages 4-5x my salary at the time

2. It was located less than 5 minutes away from my employer

3. It’s located less than 10 min away from most employers in the RTP area ( IT, my field, along with halo like employers for my skills ) gave me the confidence I wouldn’t need to relocate.

4. More space than we needed (1950 sq ft) so the upgrade temptation never infected us.

Full context, bought in 2000. Factor 3 & 4 have held up very well. Four employers later, and I’m still <20 min commute (if I choose to go in at all!)
« Last Edit: October 15, 2017, 06:56:45 AM by Rcc »

thedayisbrave

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Re: What Made You Purchase Your First Property?
« Reply #4 on: October 16, 2017, 09:08:13 AM »
The numbers worked.  My eventual goal was to build up a portfolio of rental properties, so my 1st made sense cash flow wise.  I house hacked for a few years - lived in one bedroom and rented out the other 3.  Then when it came time to move on, I rented out the whole unit and bought another place :)
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BJacks

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Re: What Made You Purchase Your First Property?
« Reply #5 on: October 16, 2017, 10:27:49 AM »
I started house hunting after my ex fiancé and I broke up and I moved back in with my parents. I was 24, in a solid career, minimal expenses, and had almost 30k saved up. I don't care for other people much and wanted my own house with my own yard and neighbors spaced appropriately far away.

I found a foreclosure that needed a bit of work (tile laid but no grout, no trim downstairs, no switch plates, needed paint and updating). It had all of one horrible picture but also said '1.24 acres' so I went and looked at it. As soon as I hit the gravel road and saw that it was fully fenced with a gate I knew it was the one for me. I didn't even care about the house (it actually has a really weird layout that my husband can't stand). I moved it 8 months after I bought it after fixing it up and painting the entire inside.

I was a single woman moving into a house that was way bigger than what I needed but 6 years and two kids later I can have another two and still not feel like moving. I have a huge backyard with toys for the kids, a garden, the beginnings of my orchard and a chicken coop. I love my gate and fenced yard because I can let the kids and dogs roam freely and not worry.

I bought at the bottom of the market and my house has more than doubled in price since I bought it. Houses that I would be willing to move to are over $500k now (again - don't care about the house but would be getting more property 5-20 acres). I have no problem staying where I'm at for the foreseeable future.

Cwadda

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Re: What Made You Purchase Your First Property?
« Reply #6 on: October 16, 2017, 10:54:08 AM »
I had done a ton of research about doing the FHA 3.5% down multi family deal and was definitely ready for it. Best financial decision I've made to date.

jac941

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Re: What Made You Purchase Your First Property?
« Reply #7 on: October 16, 2017, 11:06:13 AM »
We were renting the second place in a row where the landlord was being foreclosed on. We decided if we were going to have to deal with that headache again, it should be because we’re not paying the mortgage — not the landlord ;-)

On the day the foreclosure was supposed to go through, we made a short sale offer for well below market. We’re in a tenant friendly city - it’s basically impossible to evict a tenant unless the owner is moving in. A bank can’t move in, knew selling with a tenant would be a pain, so they accepted our offer. And that is how we ended up owning an affordable house in one of the most expensive real estate markets in the USA.

Our place is worth at least 3x what we paid only 5.5 yrs ago. We do occasionally entertain selling and FIREing elsewhere. Or selling, investing the gains, and renting - the more financially sound decision (the buy vs rent is heavily in favor of rent). But my spouse likes his job, we like our place, and we have perpetually low housing costs, so we stay even though it’s not the most financially lucrative option.

Fishindude

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Re: What Made You Purchase Your First Property?
« Reply #8 on: October 16, 2017, 02:01:09 PM »
Location and price. 
It was a rural little three bedroom home in the area of the county where I wanted to live.  We bought it for $25k, added on and did a few upgrades ourselves then sold at a decent profit and bought our forever home just s couple miles away.

dcamnc

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Re: What Made You Purchase Your First Property?
« Reply #9 on: October 16, 2017, 05:00:03 PM »
It was cheap, and it DIDN'T have a hoa. It's now paid off and I'm not paying a bunch of clowns to tell me how to maintain my own property.