Third Investment Property in Norman

[Michael Clayborne]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $116,300
Cash invested: $1,900

Future Rental Property, Purchased with 0% down VA loan, Rehabbing a few items before moving in and living there for a year. Found hardwoods under carpet and will be refinishing. Rehab pictures to follow once complete.

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

Location was too good to pass up. Price was good for the location with the property being turnkey.

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

Found on the MLS (Redfin to be exact). Caught it 6 hours after it had been listed, and by the time I had offered, there was already another offer on the property. I offered full price minus the 3% buyer realtor commission because I chose to go through the seller's agent. The offer was contingent upon inspections, during which, we found some issues and received credit on closing cost.

How did you finance this deal?

Finance this deal with a VA loan with 0% down. Credit from the seller for inspection repairs allowed me to enter closing with about $800.

How did you add value to the deal?

We found hardwoods under the carpet, so we are in the process of refinishing those. We also painted the interior, added modern appliances, and plan on replacing cabinets in the future.

What was the outcome?

Still in progress, will update as I continue to complete work.

Lessons learned? Challenges?

Sometimes something comes up that is too good to pass up, so use what you can to get it locked down. I didn't have the capital for a conventional 20% down payment so I used a VA loan that allowed me to get in for less. Also important note for those that have to work through the VA, get your COE early and make sure your military unit has given you the proper documentation required for the COE, that slowed down my loan process considerably although I was still able to close a week early.

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

Yes! Shout out to Vawter Real Estate! They were awesome and professional throughout the entire process. Also, USAA was really good and organized.