Why I Bought A Half Million Dollar Home
Well, here goes nothing!
I’ve started a blog, am tripling my real estate business since last year, growing a real estate team, and now buying a house. What better time to add General Contractor to my resume than the peak of the spring housing market! I might be going a bit crazy, but it’s balanced with excitement and determination. I (of course) plan to bring you along for the journey.
My new 2 story in Tangletown.
Here’s a little background on the house
Over the last year, I’ve been on the hunt for location and size. I don’t mind the idea of getting dirty, doing a few projects, and seeing the ROI pay back of my sweat equity. In all honesty, that’s what my goal has been. I am all about the hunt for the perfect neighborhood, block, and walkability over turnkey. Location sells at the end of the day and helps maintain strong resale prices throughout the housing market fluctuations.
With that being said, I decided to take a leap of faith with my soon to be 1920 2 story in Tangletown Minneapolis. It’s currently a 3 bedroom, 2 bathroom, 2,514 sq. ft. cutie. I will be scooping it up for $535,000 and cannot wait to put my own spin on the place.
how I decided this was the one
The kitchen is in need of a full gut, and that was a key project I wanted to tackle with my new digs.
The next door neighbor sold for $620,000 and is the same size breakdown! This let’s me know that by implementing my 2 priority projects (kitchen and garage), my ROI is safe if I stay at or below $100,000. (Many surrounding homes are now selling for $650,000 so I’ve got some buffer.)
There is space to add a powder room on the main floor and a master ensuite bath if I chose to do so.
It’s one block off Minnehaha Parkway, which is a selling point for many city dwellers like myself. It offers nature in the heart of the city with a creek, tall trees, walking paths, and more!
This kitchen reno is going to be INSANE.
I know what you’re thinking
Why on earth do you need a half a million dollar house just for you? Well, take it with a grain of salt because there are a number of factors that go into this.
First, I have my rental property income that is off setting a good chunk of my soon to be monthly mortgage payments. I will be renting out my unit for $2,200 a month and my mortgage payments will be around $2,700-$2,900 depending on what percent down I decide to do. Therefore, I’m only taking on an additional $500-$700 per month in expenses, in addition to the utilities I will be paying for.
Also, the Minneapolis housing market is one of the top 15 most expensive markets to buy in across the US. I’m not buying a 4,000 sq. ft. house that has more room than I know what to do with. Instead, I’m going to be buying a home that allows me to both live and work out of, while helping to preserve the charm of these old beautiful Minneapolis homes.
Now for the fun stuff…renovations!
If only I had endless amounts of funds to pump into this home, I could take it to THE NEXT LEVEL!! Instead, I’m trying to be strategic, by reigning in the ropes and only implementing updates that I know will help with immediate ROI. Knowing that I’m unsure how long I will stay in this home, I want to make smart financial investment decisions to maximize my time in the house and ensure I get all my money back out. I CANNOT wait to share with you all of the projects I have in store.
I’ll be sharing updates here and on Instagram @jen.mcfadyen as I progress towards moving in the next couple of months and get these projects started. I’ll also be sure to share insights like my order of operations, material types I’m leaning towards, learnings I’m sure to have and so much more.
I hope you’ll join me for this crazy ride!
Jen
Investor // Landlord and DIYer // Realtor // Business Consultant // Globe Trotter // Converting Vegan.
