My Real Estate Timeline
This post was requested by my sweet/funny friend, Alex. It may seem confusing how I've managed to rally the funds, navigate the financing and then end up with a house. So! I've timelined my real estate purchases from day one. I started at my college graduation and ended at my most recent rental purchase.
Graduated from UT, happily living in my dirty college rental with 3 roommates
Started teaching 3rd grade for Austin ISD, feeling very rich with my $43k salary
Landlord informed us that he would not renew *panic!*
Anxiety ensues over rising rents in my favorite part of Austin
Cash poor, but inspired, pitched buying a house to my mom - she pledged $6,000 to the cause (a loan of course)
Asked my realtor cousin in Utah for some guidance, she led me to Henry, my sweet realtor
After a couple months of jumping the gun on many torn up houses, but getting outbid by cash buyers, I found a sweet 2/1 that had been "flipped" a little farther east than my ideal
I was discouraged and ready to win the bidding war, so I pitched the idea to my grandma. She lent me some more money to make my offer a bit more appealing to the sellers (I'll finish paying her back this year)
PURCHASE: I bought my first house for $180,000 and lived in it for 2 years, feeling very accomplished and never imagining that I would ever do it again
My then boyfriend and I wanted to live together, but closer to downtown (we were feeling fancy). I ran a test Craigslist ad on my owned home and realized that I could pay my mortgage plus some cashflow with a tenant, so I rented it out and we began renting an adorable, over-priced craftsman on E 12th and Chicon (a bit more in the mix than my east side first purchase)
This lasted 8 months. It was a happy, fun 8 months, but we parted ways as I restlessly tried to find my path. Sure that he wasn't part of my path, but not sure about anything else, I searched Craigslist for 1 bedrooms places on the east side ($$). I had a few months to figure it out, but things were feeling bleak.
My good friend, Liz, found an amazing house across from our college house and right next to her beloved community garden. She desperately wanted to buy it and I was all in to partner (on a whim of course). She ended up buying it with her family, but I was bit by the bug again.
My mom had a small chunk of cash from the sale of her house, so we went on the hunt for a house to buy and fix up.
We found our sweet Gonzales House with the big lot and an extra unit in the back with existing electrical and plumbing *score*
PURCHASE: We decided that the bones were solid enough for us to work with. We bought it for $302,000
We put as little down as we could to keep cash to renovate. We worked tirelessly throughout our summer. We loved it and realized how much we could do to add value.
We spent about 6 weeks and $35,000 total working day in and day out
I got the house reappraised in hopes of lowering the payment by removing mortgage insurance
The house appraised for $408,000, which dropped the monthly mortgage by $250
I decided to get my real estate license to move toward more schedule freedom + lifestyle design
Started listening to podcasts and reading books about financial freedom and real estate investing
I officially got my real estate license and started helping friends buy houses
I was constantly on the MLS and addicted to analyzing deals - it was like a like cheat code!
PURCHASE: My mom, my uncle and I bought our first Round Rock investment property as a trio
We split all the up front costs, and my realtor commission counted toward my portion, which really helped me, as I didn't have much liquid cash + my student loans
officially formed RE Mau LLC (in memory of my grandpa, Ronald Ernest Mau, also an ode to Real Estate)
PURCHASE: RE Mau LLC bought our second investment property, a duplex in San Antonio
Funded by private money loan - we are BRRR-ing this property
We financed 100% of the purchase price, but are splittle the renovation between the three of us (~$20,000)
We are finishing up that project now! Appraiser is scheduled for TODAY *crosses fingers*
PURCHASE: My little sister, my good friend, Eleanore, and I bought a house in the Holly neighborhood of Austin
Bought this property with 5% down payment as a primary mortgage (cheap money!)
Currently rebuilding this house, basically from the ground up
A lot more capital pouring into this one, but I'm also living there and I'm also obsessed with the location
It will be worth a pretty penny when it's done
There is a separate exterior entrance to one wing of the house, which will function as a primely located airbnb while we fix up the rest of the house
PURCHASE: RE Mau LLC bought our third investment property in San Antonio, a little single family with a back house and a lot next door.
Funded by private money loan - we are BRRR-ing this property as well
Since this property was in such good condition, we were able to only put around $3,000 into it to get it rental ready
The back house needs a little more work, but we're able to put that on hold while we save up some more capital
We have a lease out to tenants for the main house currently!
Not everyone wants to do exactly what I'm doing, but if you want to go down a similar path or do what I'm doing to a lesser degree, my biggest piece of advice is to RESEARCH. Listen to podcasts, read books, follow blogs, ask questions! Even if you'd like to learn more passively, start by listening to one podcast a week. In my experience, it gets pretty addicted once you start learning.
I have a very distinct learn-by-doing style. I don't learn well in a classroom (ha!) and I don't learn well by JUST reading or listening. I need to combine my learning with action. I need to fail and I need to learn the hard way sometimes. You know yourself and your learning style. Adapt your goals and figure out what works for you!
Everything easy once was hard.