As of December 2023, I am the proud owner of my first investment home! There are many reasons why I wanted to do this. The main reason was to diversify where I’m putting my money. I wanted more physical things that have ownership rather than stocks and bonds which are just a number in a computer somewhere. I’ll use this blog as a place where I deposit some financial transparency, information for others, and see how some of my gambles have worked out over the months.
Investing Home Cost
With those goals in mind, here’s some information on my costs for purchasing my first investment home.
I used cash to purchase this house. I’ve been saving since about 2018 with most of my discretionary income going into a savings account. I luckily didn’t start with $0 as I had sold some stocks, diverted some other monies into this saving, and sold my residence for a profit of about $65,000. Many things went right so I know I got lucky many times to arrive here. I was also unemployed for about 18 months so that depleted about $45,000 for those months. It’s been a wild ride!
Here’s a breakdown of the costs associated with this cash purchase.
I owed $133,697.98 for the purchase of the house. This is where it could have ended since I was buying cash. I didn’t have the same stricter requirements for inspections, insurance, PMI, or any of those things because it was a cash purchase. I did want more information on the house status so I opted to have a termite and full home inspections which aren’t required for a cash purchase. The termite inspection cost was $85 and the house inspection cost was $325.
The house inspection was a good idea because the seller decided to pay $3,000 toward repairing some of the items identified in the inspection report. The report also highlighted some other items that I’ll be working on over the next few years to slowly get things to a modern level.
Final Thoughts on the Investment Home Purchase
The final purchase price to get to ownership was $134,107.98. This took a long time and was a big learning and searching process to get where I needed to be. I do have some plans to continue purchasing houses in the future. I’m not sure if it will be via a loan or cash again. We shall see!
