I remember it like it was yesterday. I was 21, working full time at Gap and about to start my senior year at The University of Toledo. I was tired of working & going to school full time. I cashed out my Gap stock I had purchased over the past few years & used that 10k as a down-payment for a multifamily property. I looked at 6 properties and narrowed it down to 2. My dad and grandma took a 2 hour drive out from Cleveland to check out what I had found. They both liked the one I didn't. They encouraged me to put in the offer. 90k. Duplex. Craftsman. 1 bed up, 2 beds down. The rest was history. I officially had doors 1 & 2.
These are the 6 things I wish I knew before making that purchase.
1. Pay for an inspection
The inspection can cost between 400-700$ for a single family house. Often this can save you thousands off the purchase price if defects are found. This can also get you out of the deal if the defects would indicate the house is a money pit.
2. Hook up with a mortgage broker
Going directly to a bank that you have an established relationship with can cost you thousands over the life of the loan. Let the mortgage broker shop you around to the lenders.
3. Keep the emergency fund close by and easy to access
Within 2 months of closing on my first place I had an assessment from the city, a furnace go out & a water heater go out. These were expensive & scary. I didn't have a great emergency fund. I scrambled.
4. HOA's can be brutal
Talk to neighbors when looking. After moving into a town house I was greeted with a 100$ fine for placing a yoga mat on my patio rail. HOA's can make or break your property. Don't go into this blindly.
5. Sellers won't always disclose defects
A few days after closing I thought it was odd water was coming into the basement at an alarming rate. Fresh paint made me think this wasn't a problem. But unfortunately it was. It wasn't a cheap easy fix
6. Your realtor matters
Going w a friend or family isn't always the best. Going w a local realtor w tons of local listings and knowledge can save you thousands.