Since I last popped in to up date all of you, Mr. BFS and I just renovated our house after some dog destruction. That wrapped up last Wednesday. Last Thursday morning, we were preapproved for a mortgage loan despite being self employed. So last Friday, we headed out just to browse. Yeah, that was the plan…
We headed out early Friday afternoon with our friend Isabelle to meet our real estate agent at the first home. This house was built in 2005, had all the room we ever wanted with 3800 square feet, but the previous owners had allowed water damage to get bad. I also found some black powdery stuff in one of the bedrooms. So despite it only costing $179,900 and Mr. BFS liking all of the space, we left to see the next house.
The next house was awesome for me and Isabelle. It had amazing curb appeal and a heavenly back yard. It was 2600 square feet, but the guest bedrooms were each about 11 x 9 square feet. And Mr. BFS was not impressed with it’s compact kitchen. We decided to give it a 7 out of 10 and headed out.
On the way out of the subdivision and back to the main street, our real estate agent pulled over into a cul-de-sac that had 2 finished homes and 2 homes being built. She asked if we would want to see the empty finished house that looked HUGE. We laughed, nodded, and headed in.
The Beginning of the End
Our jaws literally dropped when we entered the foyer. This house was HUMONGOUS. It has a flowing staircase, wrought iron catwalks, granite counter tops in the kitchen and bathrooms, tile flooring throughout except for soft carpet upstairs, 4 huge bedrooms, and 4100 square feet of living space. It even had a closet under the staircase that was big enough to stick a person in to live, so we dubbed it the “Harry Potter Closet”.
Then we checked out the bedrooms. The master bedroom closet could fit 2 queen-sized mattresses and still have depth left. Isabelle decided that she would live in there, lol. It was just majorly astounding.
It also cost $320,000. To put that into perspective, our current 1750 square foot, 3 bedroom home cost us $114,000 in 2007. We were looking at $180,000 to $200,000 4-5 bedroom homes before this. We were approved for a $300,000 loan with 20% down at 4.375% for 30 years. So $320,000 is just not going to happen.
Meeting an Awesome New Home Sales Rep
Since we couldn’t afford that house, we thought we were heading out, but our real estate agent called the home builder’s office and asked if he could make a deal or had any other floor plans. So we headed across the street to the model home and met with the nicest sales dude ever. I mean it.
I hate pushy salespeople, but this guy never even offered to sell us anything. Travis just handed over floor plans, options info, all of the prices for customizations, and he even pointed out upgrades that we would want to skip since they would be cheaper to have done later. We took a look at a couple of open model homes and made an appointment to meet with Travis Saturday morning to see another floor plan that he guessed we may want to look since it was cheaper than the mansion across the street but only a couple of hundred square feet less.
Meeting My Literal Dream Home
At 11:30am Saturday morning, I fell in love with a house. Mr. BFS and I followed Travis to a house that was sold about a month ago to a really nice family in his subdivision. The house is perfect. Literally perfect. Of course it is owned already and Mr. BFS and I would have to have a home built if we wanted it, but it is amazing. Try picturing this:
We walked into an open, 2 story foyer. On the left are french doors leading to a study. On the right is a Mother-in-Law downstairs suite with a full bath and a big bedroom with a walk-in closet. As you walk further into the home, you see the formal dining room on the right that leads to an amazing kitchen that overlooks an open living room. Seriously, the kitchen is perfect for Mr. BFS and even has a gigantic island that could be used as prep space that can easily sit 4-5 people while it is being used.
Then you head into a short hallway off the living room that has a Harry Potter closet to under the stairs, a utility room with the washer and dryer, the door to the big garage, and then you see the Master Bedroom (aka Owner’s Retreat). OMG. The bedroom is huge, the bathroom is gigantic, and it has a very awesome walk in closet. It wasn’t as big as the mansion we saw on Friday, but is is still huge and way more than I would ever need.
Finally, we headed upstairs. This house had a 300 square foot Game Room, another 3 nice sized bedrooms (155-175 square feet each) with walk-in closets, 2 full baths, and a windowless Media Room with dimmer pot lights and all! It is an entertainer’s paradise.
We Are Buying a Another House
All that was left for us to do at that point was to get Travis to show us his last 4 open lots. We picked one next to power lines since it was being offered at a $5000 discount, is 1.75 lots wide, and will never have any neighbors on the left side. It is a few steps from some walking trails that lead to the 18 acre lake with fish and ducks and a few playgrounds. This subdivision is literally 10 minutes away from our current house. I didn’t even know it existed.
By the end of Saturday, we placed a $2000 refundable deposit, signed the first beginning contracts, and made an appointment to start picking out options on Monday. With any upgrades that we may want, we will be looking at a $245,000-$260,000 house that should be built by September. Since we are putting down 20% at closing, we will be looking at an approximately $200,000 mortgage at 4.375% for 30 years but plan to pay it off in 5-10 years max.
Our Future Plans
We may have two mortgages for a couple of months. We still owe $26,500 on our current home and will be taking on another $200,000 in debt in August or September. We may have the cash on hand by then to pay off the current mortgage and put 20% down, but we will see. We are planning to rent our current home out once we move. That should bring in $1200-$1300 a month minimum according to comps in our area. We’ll put this in a savings account for landlord maintenance. After that hits $5000, we’ll start using the monthly extra to pay off the smaller mortgage if it still exists (it is at 4.5%) and then then the larger mortgage when that smaller one is paid off.
Our overall goal is to be completely mortgage debt free before I turn 40 in 2022…hopefully by the time I am 35 in 2017. But that depends on our business. If all of our income comes crashing down, at least we know that we could sell our current home at a loss and pay our new home mortgage for a couple of years with the remainder of the sale after taxes. And we could rent out the downstairs Mother-in-Law suite of our new home if necessary.
If all goes to plan, we should be able to rent out our current home indefinitely or at least until the home values rise again. We’ll be staying in our new home for as long as we can…I really just can’t wait until it is built and I can show you pictures!!!
What is your idea of a dream home? Are you in the market now too?
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year. I went self-employed in July 2011 and make between $80,000-$100,000 through blogging, professional pet sitting, hubby's reffing, and our rental home. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!). I even have all of my favorite tools on a resource page - I hope they help you too. Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!