Our Primary Residence/First Investment for under $7K Down Payment

[Austin Medina]

Investment Info:

Single-family residence buy & hold investment in Pasco.

Purchase price: $255,000
Cash invested: $6,500

My wife and I just recently purchased this home (closing in a matter of days) as our primary residence with a VA loan. Under normal circumstances the numbers on this home didn't jump out to me. However, due to timing with COVID-19 our landlord requested to move back into her residence we were renting.

This house checked the most important boxes with the ability to utilize the VA loan with 0% down, turn-key (less a little paint), and our ability to pay our mortgage and utilities together for the same price out rent was at our previous residence.

Long-term appreciation in the location of this house, along with the ability to maintain positive cash flow when we move onto our next home are some of the major contributing factors to us buying this mixed investment/primary residence.

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

Our situation with COVID-19 gave us two options - find another rental for us to live in and pay someone's mortgage or buy our first home and pay our own mortgage.

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

Found this deal through our rental property management company.

How did you finance this deal?

VA loan with 0% down - However, we added ~2K in earnest money so <1% down.

How did you add value to the deal?

The owner was hesitant about going through a buyer with FHA or VA loan financing due to their conservative evaluations of homes. In order to reassure the seller we were serious about our offer we placed our ~$2K in earnest money along with the condition that if the home appraised under value we would be willing to give them an extra $2K above the appraisal.

What was the outcome?

Closing in a matter of days - This will initially be our primary residence. This will benefit us in the long run as we are able to pay our mortgage and utilities at this home for less then our rent alone at our previous rental.

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

Amanda Windom