VA Loan - Buy and Hold 3bd/1.5ba SFH

[Jonathan Johnson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $127,000
Cash invested: $3,000

Bought this house with a VA loan and no downpayment. Lived in for one year and now rent it out. SFH I rent for $1200/mo with a $50/mo pet rent.

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

Using the VA loan is very helpful. I made sure that the purchase price was fair and it's in a good rentable location.

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

Always negotiate. The rule is: If you don't feel embarrassed with your offer, it's not low enough. I always want to see a back and forth of 3 or 4 prices. In this case they were asking $140,000, I offered $115, they offered $130,000, I offered $125,000 and they accepted. The $127,000 is the VA loan price and some closing costs that were tied in.

How did you finance this deal?

VA Loan for Veterans. Thank you submarine service.

How did you add value to the deal?

Replacing pink carpet in the bedrooms with vinyl flooring. New paint, new microwave, and a kitchen back-splash.

What was the outcome?

Cash flowing nicely!

Lessons learned? Challenges?

One challenge was the front door frame became dislodged from the house a little bit. The frame was also covered with a metal sheething that I had to remove in order to drill 4" masonry screws in. I learned the value of a impact driver.

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

USAA > Navy Federal for mortgage customer service.