Buying an 'awkward' property helped me spend less every month and pay off $60,000 of debt

  • When I bought my home in Colorado, I set a low budget and took only half what the bank offered.
  • I found an “awkward” garden-level property that cost just $72,000.
  • My low living costs allowed me to pay off $60,000 in debt, though it wasn’t always easy.
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I’m not sure why I decided to buy a property. I just remember one day thinking that I was in my forever place and that it was time for a more permanent home. It was 2007, and the real estate market was hot, but what was even hotter? The lending side of home purchasing. I kept hearing about people being loaned hundreds of thousands of dollars for what they called their “dream home.” 

I wanted something a little more modest. I wanted a home that would serve my needs for that particular point in my life. So I did something a little unusual for the time. I told my mortgage broker that I wanted to borrow half of what companies were willing to lend me, and I made a point of telling my realtor what my budget was. With those financial boundaries in mind, we began looking for my new home. 

Finding my perfect, ‘awkward’ home

As luck would have it, I found my new home pretty quickly. My realtor and I literally had to wait in line to look at it, and I would later discover that it was a perfect home for real estate investors or people looking for a rental that would always get rented out. However, the property was a little awkward. 

First, it was a ground-level unit. Think almost a basement but not quite. It was also non-conforming, which was reflected in the pricing of the unit. Basically, it didn’t have a door to the bedroom and would eventually need egress windows. 

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The previous owner had lived in it and then rented it out. She decided to sell because she and her British husband were new parents and were moving. They were looking to use the cash from the sale for other financial needs. 

Owning the property changed my financial life

I decided to say “yes” to the property even though, at the time, I was teased by a friend that we lived in Colorado not New York and why was I buying a bomb shelter?

To be honest, that comment hurt my feelings at the time. But, this purchase ended up saving me thousands of dollars over the years, enabled me to pay off over $60,000 in unsecured debt, and allowed me to pursue entrepreneurship — even with the carrying costs associated with homeownership. How much did I spend on my home? Well, it was an affordable $72,000 at the time in one of the best neighborhoods in Denver.

Over the years, I’ve come to truly appreciate the predictability of my monthly mortgage.The average rental price in my hometown of Denver, Colorado, is $1,631 a month. Currently I pay $525 in mortgage expenses and taxes, plus an additional $75 in HOA fees and a reasonable electric bill that ranges between $14 and $100 a month depending on the time of year.

Being a homeowner wasn’t always easy

I will admit, though, that there were moments when I second-guessed that purchase. That $60,000 in unsecured debt? It would choke my cash flow from time to time and affect my ability to pay my HOA fees. This was shocking considering they were a paltry $50 a month. 

I have also faced a few unexpected expenses related to owning a property, such as the time my hot water heater went out right before friends were arriving from Europe for an extended stay at my place. 

Or, the time when my fridge broke and I had to buy a new one, right before guests arrived to stay with me at the same time that I had the flu. Or, when COVID hit and my neighbor needed massive work done on the plumbing for his unit and that work required tearing up my floor and fixing my plumbing, too. Luckily that work ended up costing me nothing. 

Ultimately, buying my awkward home was worth it

This year I am slowly working through much-needed renovations and will spend thousands of dollars finally updating my place. As I aggressively minimize what’s in my home and prepare to finally move out so that I can rent it to someone else, I find myself reflecting on the following question: Was this a good purchase?

For the most part, yes. But, I don’t think that purchasing a home is for everyone. Also, purchasing an awkward property requires a certain type of fortitude that many people might not have. There were also moments when the financial aspects of homeownership were clearly more than I could afford. 

Despite those difficult financial times, I’m very thankful for the homeownership experience that I’ve had. 

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