Nothing Like the First Time

Author: Jennifer Calderon

Ryan and I bought our first home in February of 2019.

We had just spent a year living with my parents who were gracious enough to let us live in their home rent free while we saved up enough money for a down payment.

We wanted to go in at 20% to avoid PMI (private mortgage insurance) but also because that's what we thought you were "supposed" to do.

We listened and followed-ish Dave Ramsey principles. We grew up in homes where we were taught to save our way to financial freedom. But here's the kicker.

I've recently become a believer that although you might be able to save your way to financial freedom; it's better to invest your way to financial freedom.

We moved to Austin in 2019 and at the time we thought we were already too late to the party. The price of homes was on the rise, Austin as the "it" spot was already talked about on seemingly every blog, magazine article and IG account known to mankind.

But we didn't care because we thought we were buying our "forever home" (something I also no longer subscribe to). We got in at a 4% rate and thought we would live there happily ever after.

While we were busy living in our "forever home" Ryan started almost obsessively listening to Bigger Pockets, a podcast on real estate investing. It was through this platform that he learned that as a first time home buyer you actually only need to go in at a 5% down payment. And we immediately hated our previous life decision.

Yes, by going in with a 20% down payment, we avoided PMI but when we ended up doing that math, we laughed at how much extra a month that actually was. For instance (if my memory serves me right) I think we calculated the extra PMI that we would have had at a 5% down payment, on our first home, to about $60 a month (which in Austin, was less than what we would spend on a Thursday night date).

You might be thinking, "Jenny, $60 a month isn't something to laugh at" and in way you're right but also...in 2023 we sold that home and in four years we profited $200,000.

I'm sharing real numbers with you because I want you to understand something I've only recently learned; the normal person will use their time and energy to make money, the wealthy will use their money to make more money.

We've since invested that $200,000 into a new home purchase in Chattanooga, a remodel of the home we bought when we moved to Georgia in 2022 (which will become a full-time Airbnb) and into our fertility journey (also warning to the wise, money goes quickly, so spend wisely).

So what's the point of all of this? If we knew then, what we know now, we would have put 5% down on our Austin home and as soon as we would have qualified we would have bought a second home at 10% down (or if possible would have moved into a new primary residence in Austin at 5% down).

Our income would have been stretched even thinner then it was but a few less nights out on East 6th street and few less mornings at Veracruz and we might have been able to make it work. I LOVE Veracruz breakfast tacos but if asked would I like to go to Veracruz every day or have an additional $200,000 in the bank right now, I would choose the later.

The money we made from selling Austin is already spent (homes, contractors, supplies, every visit to the IVF nurse, it all adds up) but I'm confident that what we we did once we can do again. Chattanooga is our new Austin and this time we're doing things right (I think).

If you're interested in having real estate change your life, give Ryan a call. He used real estate to to change the course of our lives and I'm confident he can help you do the same.

You can call him at 805-801-9671, email him at ryan@chattahomesearch.com or schedule some time on his calendar here.