1st Real estate property

[Collin Wallace]

Investment Info:

Single-family residence buy & hold investment in Twentynine Palms.

Purchase price: $220,000

I purchased this property as a rent by room LTR for military personnel. I bought this home using part of my VA loan cap as a primary residency to live in and house hack the other rooms. I am currently bringing in an additional $450/mo after PITI.

What made you interested in investing in this type of deal?

It was a property owned by a co-worker. I knew the property well and the market surrounding the area. I primarily needed a home to live in for 2+ years and was tired of paying rent. I saw a huge need for rent by room properties and took the leap.

How did you find this deal and how did you negotiate it?

Co-worker. Was able to negotiate $0 down and the seller to credit $14,000.

How did you finance this deal?

VA loan

How did you add value to the deal?

Looking to aesthetically add value to the exterior as well as landscaping that will set the home apart from the rest of the neighborhood.

What was the outcome?

LTR, renting 2 out of 3 bedrooms bringing in $450 after PITI. Plan to rent out the 3rd bedroom after I live there for 2 years, bringing additional income!

Lessons learned? Challenges?

Doing a FSBO contract and not using realtors on both ends took a lot more time and effort than I expected for doing my first deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No agents, but I worked with a Veteran Marine and his lending team at United Wholesale Mortgage. They were extremely helpful and taught me things along the way!