We aren’t getting a rental house. Remember how I was so excited? I couldn’t stop talking about galloping?!?
Well, it’s official. At 8:00 this morning, we terminated our contract with the bank. I’m pretty heart broken.
Goodbye ugly house.
Why did we make the decision to let go of our first affordable rental property?
1. Renovation costs. After an inspection and an electrical estimate, we realized it would to cost us A LOT more to renovate this house than we expected. We expected to do cosmetic work..because the kitchen looked like something out of a bad 80’s cartoon.
But we didn’t know we would have to do an extreme amount of electrical work. We didn’t even get a plumbing estimate, so there’s no telling how much that would have been.
Adding it all up, we would be lucky to buy it and finish renovations for $30,000. Which, for a house, isn’t a lot of money. But, it’s over our budget.
2. Another reason we didn’t buy the house is timing. It is a tough time for us to buy a rental. Mr. We’ve Had Them Since They Were Tiny is about to start his busy season at work. So, we wouldn’t be able to get it finished for six months.
3. Finally, It conflicted with other goals. We made a goal three months ago to pay off our house. Buying the rental would have set us back about a year– maybe even more than that.
Even though we have solid reasons for backing out, I’m not sure we made the right decision. The house appraises online for $44,000. So, we could have made some money. But, other houses in the neighborhood were selling in the 20’s. We could have lost a little money too.
It’s hard to let it go, but we talked to everyone we could. We got inspections and estimates. We talked to real estate professionals and family members. And, we are back at 0.
The toughest part? It’s the same as with all hard decisions. You never know without a doubt if they are right or not. Eventually, you just have to make the best decision you can and go with it.
Even though we gave up our first rental…it won’t be our last. But, I am going to stop watching HGTV for a while.
Have you ever given up on something, that may have worked out?