Third Property and First House

[James Toland]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $529,000
Cash invested: $80,000

Found an 8-bedroom 3 bath house in Aurora Highlands that offered a VA assumption with an interest rate of 3.25 percent! The basement floor has 3 bedrooms, a bathroom, and a space for a small living room. The main floor has the master bedroom, a bathroom, a kitchen, a dining room, and a small living room. The top floor has 4 bedrooms, a nice sized living room, bathroom, a fully functioning library, and 2 offices attached to the library.

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

Initially, I wanted to use the rest of my VA entitlement for another property and then saw the 3.25% interest rate and the amount of house so I knew I could create a strong deal if I put in the time, money, and work.

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

I found it on Zillow as an assumable VA loan. We negotiated the purchase price from 550k down to 529k.

How did you finance this deal?

I financed this deal through my own personal money, liquidating both my stocks and mutual fund to help purchase it. I understand real estate a lot more than other passive income streams and was looking to pull out for a while and throw into another property.

How did you add value to the deal?

I plan on converting the basement into an autonomous apartment. It already has 3 bedrooms and a bathroom and just needs a kitchen to be complete. Since there is already a washer/dryer unit down there I will create a small room for them against the bathroom to save on plumbing and electrical costs and use a stackable washer and dryer. Currently working on adding the kitchenette and thankfully I already have people who want to rent out the space once it's completed early next year.

What was the outcome?

Still in work but I will be posting periodical updates!

Lessons learned? Challenges?

Assumptions are tough and the banks don't make it easier. Bug them to complete your transfer as much as you need too!

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

Megan Malone-Horn is great and I would highly recommend her to other investors!