We have owned homes, 6 homes to be precise. All of those were truly where we would live (even just on weekends), call our home and rest our heads. Buying an investment property is, or should be based on what the home is or will be worth and less about emotion. I will give us a B- on keeping the emotion out.
Before we started shopping we set some rules that overall, we have stuck to. I will be telling you where we did not and what we wish we had done down the road.
1. The house had to be on a numbered or lettered street close to Sam Houston State University. Homes in this area just don’t come along every day. Here is the Zillow map of what is for sale right now in the area we were looking.
2. The house had to make sense for us financially. We tend to lead with our hearts then make it work later. The numbers had to work or we were willing to walk away. We did walk away for a while from this house, but the house kept calling us and the owner accepted our offer finally. We would not have purchased the home if we did not believe the rent on the property would give us a return on our investment.
3. We needed to know what we were getting into. We checked local codes, researched the house with the city and county to make sure there were no surprises. I advise hiring the best inspector you can find and go on the walk through with him or her. Bring in trades for estimates if there are problems. Know what the electrical, the plumbing, the foundation, the roof etc are going to cost. I have names if you live in our area. Run the numbers. After you know what you are looking at does it still make sense? If after everything it is too expensive and even if you love it…walk away.
4. We knew to look past the ugly. Does the house have a good layout? Is it structurally sound? If not, is the price low enough to make it so? If the answers are yes, don’t worry so much about ugly paint, nasty floors, missing or filthy appliances, or overgrown backyards. (Our house had all of the above.)
I cannot wait to tell you about what you see in the photo above.
Oh that master bedroom and bath. Nicotine coated everything that cat urine or hair did not. We learned a lot here. I took a lot of showers. A. Lot. Of. Showers.
Track lighting in the dining room. Wall right when we walked in. You are going to be so surprised at this space…if we ever get it finished.
A broken stove, nasty floor, leaky faucet were just a few of the treasures that this closed off kitchen had for us.
I cannot even explain how nasty this house was. It smelled so bad of cigarette smoke and cats that our realtor didn’t want to go in and oh yeah…there were fleas.
Were we crazy? Yes. It has been the phycially hardest home we have ever worked on. It has been an emotional ride. We have learned a lot about ourselves and a little about home repair.
Was the home a good investment? I believe that it will be. Only time will tell.
We look forward to showing you our progress, and our failures as we take on this journey. We love to hear from you and value your input.
I have started a Pinterest board about our 8th and M home if you want a peek into what we have planned. 8th and M on Pinterest