So just 3 months after selling our last flip, we purchased another. Given the unseasonably warm December, we were able to work on the exterior! I will admit that in funding our last house we were not as “comfortable” with our finances as with this one.
The Financial Difference
Finances can be a sore topic with some couples, but luckily, we have always been on the same page. We are very much “savers”. When we got married, neither of us had any debt! Vehicles were paid for, we had no credit card debt, and no student loans. I realize this is rare, but we both worked hard to avoid debt.
Our first financial debt was our first home. Back then we were looking for a house that was more “move in ready” because we were not interested in investing in real estate, but rather finding a solid home so we could build our careers. Once we sold that house, we bought a foreclosed home (our current one). It wasn’t in terrible shape, but needed some finishing touches. We definitely got it at a great price as we now have well over 100K in equity.
We slowly saved enough money to be able to put 20% down in cash to purchase in investment property. The last house that you have seen in previous posts, I actually purchased while my husband was running a race. When he came home I said, “I bought a house while you were running.” Somewhat perplexed yet curious, he responded, “Is it a good one?” After renting it for a year, we sold it this past October in a matter of days and had multiple offers which drove up the sale price. 🙂
Our profits from that house more than covered 20% down to finance the next one as well as cover all of the renovation costs. Not having to dip into personal finances is a definite bonus!
The “Farmhouse”
Our next purchase was an 1869 Farmhouse….yes 1869! We loved the house and the property instantly, but it definitely needed some serious renovation.
After I convinced the insurance agent that the home was built in 1869 and not 1969, we still had a long closing process, but finally gained possession in December. Needless to say, it has been a busy 3 months trying to whip this house into shape. (Did I mention we both work full time and have 4 children 4 & under?)
The Exterior
Usually when you purchase a home in Michigan and close in December, the snow is flying and it is pretty chilly! Well. not the case this year! We were working on the exterior of this house in the middle of December! The exterior had been somewhat neglected, but if you read our previous post on “Transforming Exteriors”, you know that it does not cost a lot to make a significant change. This house looks a million percent better just after pruning trees, moving some perennials to more appropriate places, bringing some of my own perennials there, power washing the house (thanks Dad!), and painting the shutters. Painting the shutters was a late night project….the kids would go to bed around 9:30, and we would go downstairs and paint late at night using my phone flashlight to be sure there were no runs. 🙂
Here is the exterior “before”:
The shrubs were severely overgrown and the brick edge was actually holding in water with the ground sloped toward the house. Thanks to the unusually warm December, we could get a head start on the yard work.
These bushes did not come out willingly! My dad and I tried pulling them out with our vehicles, digging them out, using a variety of axes and chainsaws…..they would not budge! We ended up digging down and cutting them off as low as we could.
We then added a bunch a fill dirt, planted some dwarf bushes (donated to us from one of our neighbors), and my mum plants, Fingers crossed they green up as it gets warmer!
We plan to finish the exterior in the next week or so…but here is an “in progress” picture.
Stay tuned for the ‘after’!
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