Review My 1st home purchase

[Antonio Montgomery]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $159,000

1st home currently under contract. Sale Price 159k 4bd/2ba/2 car garage. Per my realtor has an AVM currently of $176k w/ a max Real AVM of 195,527

VA Loan 0 Money down, Lender waived $500 appraisal Fee, Seller brings $4k to close. Estimated Cash to close $433.00

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

Premium neighborhood

If I wait 1yr to rent out the property. Just going off the standard .80%-1.1 of the home value for rental properties
.80%= 1408
1.1%=1936
current p&i $841.44 + 205 taxes +104 homeowners insurance = 1,151.44

13819 in PITI, 3076.80 =22% capex

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

Realtor.com, I'm focusing on high end undervalue homes

How did you finance this deal?

VA Loan No money down, no funding fee (due to disability)
Origination Fee $1,590
Recording Fees and Other Taxes $90 Transfer Taxes $318

Total Closing Costs (J) $6,521 Closing Costs Financed (Paid from your Loan Amount) $0 Down Payment/Funds from Borrower $0 Deposit -$1,000 Funds for Borrower $0 Seller Credits -$4,000 Adjustments and Other Credits -$1,088
Estimated Cash to Close $433

How did you add value to the deal?

tactful and decisive w/ negotiations

What was the outcome?

I took the home off the market 1st day, 1st offer was for ask of $159k, then I told the realtor to get it off the market at $163,500 with sellers 5k closing assistance w/ me only brining $250 earnest deposit. They counter for $750 earnest deposit + $250 DD fee. I went back to the ask $159k and still got $4k in closing (but gave them the $1k) 750+250. They accepted it

Lessons learned? Challenges?

Dont play around w/ negoations. Be a Boss and A bully works. If you have the juice go to buyers ask but have them pay the closing costs. Buyers are brining $4k to close, sellers want you to have skin in the game. I'm getting $500 appraisal fee waived but i'm paying $350 inspection, $750 Earnest Money (was initially $250) and buyers requested $250 DD fee

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

Mary Sprague local Realtor