Buying a Second Home Part II

Good news since my first article on buying the cabin. Everything is a go. The appraisal came back favorable on my primary residence, and there will be plenty of cash at closing to buy the cabin outright. The official closing is later this week, but I wanted to give an update of what has transpired since my first report.

The Process

To say this was a long stressful process would be an understatement. It’s mostly a waiting game. Waiting for paperwork to clear.  Waiting for the appraisal results to come in. Resubmitting a bunch of paperwork because the wait in between signing various documents was too long. It was a frustrating process, but welcome to real estate transactions, I suppose. In the end it worked out.

So, the cabin itself is on a trout stream and about two miles from a major river. It’s 700 square feet with two bedrooms, a full bath, remodeled kitchen, and a living room with fireplace. The roof is new as is the plumbing and furnace. The plan for next Spring is to put a deck in the back, finish the work in the bathroom, install laminate flooring, and reside the outside. Once completed we can start renting it out as a weekend cabin during the times that we aren’t using it.

What Happened With the Primary Residence?

As far as what happened with my primary house goes, I was able to pull out enough cash to buy the cabin and drop from a 30-year to a 20-year note. My payment is going up $100 a month. I also got rid of PMI. I’m calling that a win, especially since the second property will be an investment property.

I’ve always had a fascination with real estate, and in particular, real estate investing. If I can make a go of this first deal I plan to add to my portfolio. The area that we are in is solid and has year-round rental potential. I envision having six properties in the area – 12 might be enough to walk away from my 9 to 5, but I don’t want to get ahead of myself.

So, there is a quick update on what’s going on so far. I’ll be updating again after closing, as I’m sure we are going to run into countless unforeseen issues, problems, and expenses. But, I’m happy with the outcome so far and am looking forward to getting this place rent ready.

Have you purchased a second home? Share your experience in the comments below!

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