Our first Primary Residence turned into a pretty good investment!

[Patterson Hill]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $405,000
Cash invested: $10,000
Sale price: $495,000

My wife and I joined the Air Force lifestyle in 2009, and rented for five years before we worked up the courage (and savings) to buy our first home (VA benefits helped!). At the time, we looked at it as a smart asset...without realizing its potential as an income stream when we sold it! While we were very blessed to come out way ahead on the sale, our first experience owning a home convinced me of the potential of real estate investing.

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

- The concept of owning vs. renting
- Belief that the East Bay Area, CA hadn't yet reached its valuation limit

How did you finance this deal?

VA Loan

Lessons learned? Challenges?

- We didn't find any value in using a local lender vs. an "internet bank."
- Realtor fees are negotiable. After doing all the staging/finishing/advertising work needed to FSBO, a realtor contact offered to manage the listing for 3% (vs. 6%).
- I wish I'd understood the concept of "house-hacking," we would have looked at multi unit properties in order to create income from our primary residence!

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

Dave Devine, of the National Bank of Kansas City is an outstanding VA loan lendor!