Just started the binding process of a property. Please send me good advices on how to make the next month less terrible!
-first time home buyer
-3.5% down (using PMI and 401k. Don’t judge me pls) though dad could help out some shape or form

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You sound very cash strapped. Be very budget focused the next few months.

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No holiday splurges for you! What did you get on your interest rate?

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Did exactly the same with my duplex. First time buyer with 3.5 down. Ended up filling the other unit 20 days after closing. I recommend having extra cash as there is always something to fix/update after a purchase.

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The building I purchased was built in the 70s. I currently live in one of the units and rent the other

Do you have an emergency fund for the property?

I would be very careful about drafting up a rental agreement and making sure you know what your tenants intentions are. Especially during COVID, if you get a tenant in and they are horrible.... you cannot evict them if they don’t pay you. (I’m in Portlandia) One way to assure you get monthly rent is if you go through your state’s housing assistance program, this way, voucher holders get a large percent of rent taken care of by section 8 program.

Also, I’ve recently been made aware that if you supply a washer + dryer for your tenants use and they break it. You have to keep up with maintenance for them. **I wouldn’t supply it ((also depending on state law but thought I’d throw that in there since I’m going through this right now))

Damn they’re giving out 3.5% down loans? What kind of loan amount is that available for, if you don’t mind my asking?

Just make sure you have all your ducks in a row (inspections, appraisal etc.) and make sure your real estate attorney is good. Especially if you’re buying an apartment a good lawyer can turn up a bunch of stuff in diligence.

Make sure you have all the cash you need for closing costs readily at-hand, with cushion. Make sure you understand the closing costs haha.

Ooooh such great points!!

We used a first time home buyers program, worked nicely, but works as an extra small loan. Can't wait to get that paid off and then we will be soaring!!!

Best of luck! That last couple of months before we got our keys were stressful. But it'll pass quickly and soon you'll just be worried about how to carry all your stuff! :)

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