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

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

[Patrick Soukup]

Interesting way to entice the seller with the $2k above appraisal value if it appraised low. Does the property need any renovation work and how long do you plan on living in this home before moving into your next? 

Congrats on the deal.