Live-In Flip with a VA Loan

[Aubrey Maldonado]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $175,500
Cash invested: $8,500
Sale price: $198,000

My husband and I used our VA Loan to purchase our first primary residence with zero down payment. The home was outdated and needed some fixing up. We received seller concessions of all closing costs paid and an additional $3500 "use-as-you-choose."

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

The benefits of using a VA loan for $0 down and the tax benefits of living in the property for two years before selling.

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

We found the deal on the MLS and negotiated the price and concessions based on the inspection report and cosmetic repairs needed.

How did you finance this deal?

VA Loan

How did you add value to the deal?

We replaced the old flooring with LVP in the living room, dining room, kitchen, and bathrooms; put a fresh coat of paint on all the walls, upgraded light fixtures in the kitchen, dining, and living rooms; and replaced the kitchen appliances. Later we replaced the roof with insurance money from Hurricane Florence; upgraded the kitchen sink and faucet; and put in new landscaping.

What was the outcome?

We received multiple offers above listing price and had it under contract within 48 hours of listing.

Lessons learned? Challenges?

We bought the property intending to keep it as a rental before we knew about calculating for Cap Ex, Vacancy, Maintenance and Property Management costs. Once we knew better and ran the numbers, we realized we would be better off selling (in a hot seller's market) and getting the cash than trying to hold on to the property.

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

Movement Mortgage